Grain Highlights 01.06.2022

According to the forecast of the Ukrainian Grain Association,  the grain production in Ukraine will reach 66.5 million tons in 2022 obtained from 18.8 million hectares.

- According to the forecast of the Ukrainian Grain Association,  the grain production in Ukraine will reach 66.5 million tons in 2022 obtained from 18.8 million hectares. At the beginning of April, the forecast was for 63 million tons. The wheat production is projected at 19.2 million tons (33 in 2021). In 2022/23, wheat exports from Ukraine will reach 10 million tons. The barley production is expected to reach 6.6 million tons (10.1 in 2021) and barley exports are estimated at 2 million tons. The corn production will be 26.1 million tons (37.6) and corn exports are expected at 15 million tons. The sunseed production will reach 9 million tons (16.9) and the rapeseed production is predicted at 1.5 million tons (2.9). The soybean production will be 2.1 million tons (3.5) with exports of 0.8 million tons. The total grain and oil exports will be 30 million tons. It should be clarified that alternative export routes have a capacity of up to 1.5 million tons per month.

- According to USDA data, as of 31.05.2022, 86% of the planned areas for corn have been sown in the United States (+14% for the week and 94% a year earlier and 87% on average for the last five years). The sowing campaign of soybeans has been carried out on 66% of the planned areas (+16% and 83% and 67%). 29% of winter wheat crops (+1% and 48%) are in good and excellent condition. 73% of the planned areas for spring wheat have been sown (+24% for the week and 97% and 92%).

- In April, 5.41 million tons of soybeans were processed in the United States.

- Yesterday, commodity funds in Chicago were net sellers of 23,500 contracts of corn, 14,500 contracts of soybeans and 21,000 contracts of wheat.

- According to Conab data, as of May 28, 2022, 0.6% of second corn production has been harvested in Brazil (0.2% weeks earlier and 0.3% a year earlier). 85% of the first corn production (+1% per week) has been harvested. The weather is dry and warm, which helps the campaign.

- According to the May report of CNGOIC, domestic consumption of corn in China will reach 279.1 million tons in 2021/22 (-2.1 compared to the previous estimate). The decrease is due to the limited use of corn in feed (down to 182 million tons). In 2020/21, corn consumption in the country was 275 million tons. In 2022/23, corn areas in the country are estimated at 43.1 million hectares (43.3) and the corn production is projected at 275 million tons (+2.4 compared to 2021/22). Domestic consumption will reach 288.2 million tons, including 190 million tons for feed. Corn imports are estimated at 18 million tons (20).

- The MPA predicts that the export of palm oil from Malaysia will reach 18.6 million tons in 2022 (18.1 in 2021).

- The Egyptian government has banned domestic wheat trade with third countries. The goal is for the authorities to buy the entire domestic wheat production of 6 million tons.

- According to the forecast of Oil World, in the second half of 2021/22 (March - August), world's soybean exports will reach 83.94 million tons (91.9 in the first half of the season), which will be dictated by the poor production in South America. Exports from this region will reach 56.2 million tons (64.5). Exports from the United States are expected at 16.7 million tons (8.2). For the entire 2021/22 season, total world's soybean exports are estimated at 156.4 million tons (165.3), including 58.5 million tons from the United States (61.8) and 82.2 million tons from Brazil (81.1).