[June 14] This week's World Grain Market News

GrainScanner
14 Jun 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, price movements, and production forecasts from major countries. Let's dive into the top news stories and understand the current market dynamics.


1. Turkey is banning wheat imports until October 15, 2024, to protect producers

Turkey will halt wheat imports from June 21 until at least Oct. 15 to protect local farmers from price fluctuations and ensure domestic procurement of raw materials, according to the agriculture ministry. This decision led to a 2% drop in U.S. and European wheat futures, as traders feared Russian exporters would suffer, needing to sell their wheat cheaply elsewhere. Turkey, the world's fifth-largest wheat importer, primarily buys from Russia. The halt aims to prevent price drops during the harvest, meet export raw material needs domestically, and stabilize the market for producers. The import ban may extend beyond Oct. 15 depending on market conditions. Additionally, Turkey will now allow controlled exports of flour and certain grains with a TMO export license.

๐Ÿ”—  Read Full Article> Turkey halts wheat imports until October to protect producers | Hellenic Shipping News

๐Ÿ’ฌ The recent import restrictions are expected to lead to a drop in international wheat prices and cause disruptions in the wheat market.


2. Will Wheat Flour Prices Rise? Adverse Weather in Key Production Areas Raises Concerns

Unfavorable weather conditions in major global wheat-producing regions are expected to significantly reduce this year's wheat production. Australia's Bureau of Agricultural and Resource Economics and Sciences (ABARES) forecasts Western Australia's wheat exports for 2024-2025 to be only two-thirds of the previous season's 31.8 million tons, due to prolonged dry weather delaying planting. France is also facing difficulties, with excessive rainfall since last year leading to reduced wheat growth and potential crop damage. Only 61% of French winter wheat is in good condition, down from 91% last year. In Russia, repeated dry weather and frost are predicted to decrease wheat production by over 10%, complicating global supply amid ongoing war-related disruptions.

๐Ÿ”—  Read Full Article> Will Wheat Flour Prices Rise? Adverse Weather in Key Production Areas Raises Concerns | Nongminnews

๐Ÿ’ฌ Adverse weather in key wheat-producing regions is poised to reduce global supply, potentially driving up wheat flour prices.


3. U.S.-Mexico Meeting to Resolve Corn Trade Dispute

A delegation from the U.S. Grains Council (USGC) visited Mexico to hold discussions with key stakeholders involved in U.S.-Mexico corn trade. Mexico is expected to import between 14 million to 16 million tons of U.S. corn this year. However, a trade dispute has arisen over Mexico's ban on the import of genetically modified (GM) corn, significantly impacting both countries' economies. The USGC is committed to minimizing trade barriers and maintaining a stable corn supply through continued cooperation with Mexico.

๐Ÿ”—  Read Full Article> USGC meets with major stakeholders in US-Mexico corn trade | World-Grain

๐Ÿ’ฌ While wheat planting and export forecasts remain uncertain for Argentina and Russia, Ukraine and the EU continue to show steady increases in their export volumes.


4. U.S. Grain Crop Ratings Overall Subpar

According to recent analyses by U.S. evaluation agencies, recent rains have led to lower-than-average crop conditions for corn and soybeans. The grain crop rating scale, ranging from 1 to 5, showed corn scoring 3.68, down from 4.02 last year, and soybeans also slightly decreasing from 4.0 to 3.98. The U.S. Department of Agriculture is expected to release an official report on this year's crop conditions next week.

๐Ÿ”—  Read Full Article> Corn conditions below average, soybeans near normal | Hellenic Shipping News Worldwide

๐Ÿ’ฌ Lower crop ratings could impact market prices and supply stability.


5. FAO Food Price Index Rises for Third Consecutive Month

The Food and Agriculture Organization (FAO) of the United Nations reported that the May Food Price Index rose to 120.4 points, marking a 0.9% increase from the previous month and the third consecutive monthly rise. The increase was mainly driven by higher prices for grains and dairy products, with the grain price index rising by 6.3%. This surge was influenced by higher export prices for wheat and corn and unfavorable crop conditions. In contrast, the sugar and vegetable oil price indices fell by 7.5% and 2.4%, respectively.

๐Ÿ”—  Read Full Article> FAO Food Price Index inched up in May for third consecutive month | Hellenic Shipping News Worldwide

๐Ÿ’ฌ Rising grain prices reflect global supply challenges and could impact food security.


Adverse weather conditions in major global grain-producing regions and trade disputes have raised red flags over the global supply and demand of grains. With poor crop yields in major producing countries and export-import restrictions, concerns are mounting over rising grain prices and potential supply disruptions, triggering alarms about food security.


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