[May 30] This week's World Grain Market News

GrainScanner
30 May 2024





๐Ÿ“ฐGlobal Grain Keyword News




Here are this week's key updates in the global grain market. Stay informed on the latest trends in grain exports, production forecasts, and shipping rate fluctuations from major countries. Let's dive into the top news stories and understand the current market dynamics.


1. Chicago Wheat Futures Adjust Below 10-Month High

Chicago wheat futures edged down on Wednesday, adjusting below a 10-month high as investors watched for rain in Russia to mitigate declining harvest prospects. Soybean futures also fell slightly, while corn remained almost flat. Analysts have reduced Russian wheat harvest estimates by 10 million metric tons this month, unsettling the market. U.S. wheat harvest prospects remain a key focus, with the USDA rating 48% of the winter wheat crop in good-to-excellent condition. Corn and soybean planting in the U.S. is progressing slightly ahead of the five-year average, and Argentina is set to begin corn shipments to China from July.

๐Ÿ”—  Read Full Article> Wheat eases after rally as weather watched | Hellenic Shipping News Worldwide

๐Ÿ’ฌ Uncertainty in Russian harvest prospects leads to Chicago wheat futures adjusting below a 10-month high.



2. Reasons Behind the Rise in Previously Subdued Corn Prices

Corn futures for July delivery on the Chicago Board of Trade (CBOT) rose 2.7% over the past week. Typically more stable than other crops, corn prices have recently spiked due to drought conditions in major growing regions.

A key factor driving up corn prices has been the surge in wheat values amid crop concerns in top exporter Russia, boosting demand for relatively cheaper corn.

In Brazil, excessive rains in the south and drought in major corn belts led to downward production revisions, further tightening global supply. South Korea's feed industry contractually secured around 65,000 metric tons from South America or South Africa, reflecting heightened appetite.

๐Ÿ”—  Read Full Article> CBOT corn finishes nearly flat, but up 2.7% for the week | Hellenic Shipping News Worldwide

๐Ÿ’ฌ Previously subdued corn futures prices spiked amid supply disruptions from drought and a wheat crunch, coupled with corn's relative price advantage.



3. Datagro Lowers Brazil's 2023/24 Soybean Crop Forecast Due to Yield Declines

Brazil's soybean production for 2023/24 is forecasted at 147.57 million metric tons, down from 147.96 million tons, due to lower national yields and flood losses in Rio Grande do Sul, according to Datagro. Despite this, the planting area has increased for the 17th consecutive year to 45.935 million hectares. Average yields fell to 3,213 kg/ha, 10.8% lower than last year's record. Datagro also revised its second corn production estimate down to 90.515 million tons from 91.862 million tons, citing weather concerns.

๐Ÿ”—  Read Full Article> Brazil 2023/24 soybean crop view cut on sharp drop in average yields – Datagro

๐Ÿ’ฌ Brazil's soybean yields drop, prompting a downward revision in production forecasts despite increased planting area.



4. Ukraine grain exports reach 45.8 million tons, surpassing last year's figures.

Ukraine's grain exports reached 45.8 million metric tons by May 27 in the 2023/24 marketing season, up from 44.9 million tons a year earlier. This includes nearly 4.4 million tons exported so far in May, consisting of 17 million tons of wheat, 25.8 million tons of corn, and about 2.4 million tons of barley. Approximately 95% of Ukraine's grain exports are shipped via Black Sea ports. The Ukrainian government expects to harvest 81.3 million tons of grain and oilseeds this year and projects an exportable surplus of about 50 million tons for 2023/24. For 2024, grain and oilseed production is forecasted to be between 73 million and 74 million tons.

๐Ÿ”—  Read Full Article> Ukraine grain exports at 45.8 mln T, ministry says | Hellenic Shipping News Worldwide

๐Ÿ’ฌ Ukraine's grain exports show resilience, exceeding last year's totals despite challenging conditions.



5. Steep Rise in Shipping Rates: Causes, Impact, and Outlook

Recent trends show a sharp increase in shipping rates. The Shanghai Containerized Freight Index (SCFI) surged to 2,520.76 as of the 17th. The primary cause is the situation in the Red Sea. Due to prolonged voyages caused by detours around the Red Sea, global shipping capacity has decreased by approximately 8%, leading to increased freight volumes and transit times. Consequently, shipping rates have risen, resulting in higher revenues for the shipping industry. Experts, however, predict that the rise in rates will not last long. Yet, the impact of the Red Sea crisis, port strikes, and peak seasons remains unpredictable and could affect maritime transport at any time.

๐Ÿ”—  Read Full Article> Steep Rise in Shipping Rates: How Long Will It Last? | Tradlinx

๐Ÿ’ฌ Shipping rates surge due to Red Sea crisis, but experts warn the increase may be short-lived amid unpredictable disruptions.



GrainScanner updates new articles every week.

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