Grainscanner brings
some global grain market issues
1. US Cash Grains-Corn basis bids mixed, soy steady
Corn basis bids for the U.S. Midwest were mixed, as grain dealers began rolling out bids for the Chicago Board of Trade July futures contract sequentially from May. For soybeans, bids were steady, with CBOT's July futures contract SN24 trading at a premium of about 18 cents over the May SK24 contract. Although farmers' harvest is slow, rain is expected for most of the crop zone on Friday, which is likely to slow down field work. CBOT soybean futures edged lower, while corn futures remained fairly flat on a possible U.S. sowing delays.
2. The market confusion continues to continue to market confusion in Brazil
South-central Brazil (CS) sugar output rose 30% from a year ago to 710,000 metric tons, data from Unica showed. The increase was recorded as mills allocated more sugarcane and smaller amounts for ethanol, data from Unica showed. S&P Global Community Insights's estimate was 689,000 metric tons, but actual output exceeded that. Sugar prices in New York fell as a result, and sugar traders reacted negatively to the high quota. Sugarcane crushing also rose 14.1%, meeting market expectations. Ethanol production also rose 7.2% to 841 million liters.
3. US soybean basis gains, corn falls
Basis bids for soybeans shipped to the U.S. Gulf Coast were higher, supported by tight supplies of oilseeds, but corn barge bids fell. Midwest farmers are focusing on spring sowing, but rain is likely to halt field work on Friday. Wheat prices on CBOT posted their biggest weekly gain in more than two years, while bids for soybeans and corn barges shipped from Gulf waters rose. However, FOB Basis offers held steady. Ukraine's 2023/24 grain exports fell year-on-year, but Argentina's Rosario port lost its position as the world's second-largest grain export hub, behind Brazil and the U.S.
4. El Nino's Food Production Threat In Southern Africa, FAO Urges Strengthening Preparedness
The outlook for grain production in southern Africa is threatened by a shortage of rain caused by El Niño. The lack of production of corn is expected to exacerbate food insecurity for households and trigger higher food prices, according to the FAO. Food insecurity in southern Africa is expected to worsen by the end of 2024, with fears of a decline in farm household income along with rising prices. The governments of Malawi, Zambia and Zimbabwe have declared drought emergencies, with negative impacts expected on major grain crops. The FAO says measures to strengthen farmers' resilience are essential in preparation for the transition to the La Niña climate pattern.
5. Canada may see 5% boost in wheat output
Canada's grain output is expected to rise by nearly 5% in the upcoming marketing year, according to a report from the U.S. Department of Agriculture's Office of Overseas Agriculture (FAS). The surge in wheat production is forecast to hit 61.4 million tonnes, up 4.9% from last year when overall grain production was drought-stricken. Durham's output, in particular, is expected to rise significantly, with wheat exports rising while corn and oats falling. Corn imports are expected to fall 30% on improved moisture levels in prairie fat and increased domestic feed supplies.
GrainScanner updates new articles every week.
If you're interested in Greenlabs, please contact us.
Grainscanner brings
some global grain market issues
Corn basis bids for the U.S. Midwest were mixed, as grain dealers began rolling out bids for the Chicago Board of Trade July futures contract sequentially from May. For soybeans, bids were steady, with CBOT's July futures contract SN24 trading at a premium of about 18 cents over the May SK24 contract. Although farmers' harvest is slow, rain is expected for most of the crop zone on Friday, which is likely to slow down field work. CBOT soybean futures edged lower, while corn futures remained fairly flat on a possible U.S. sowing delays.
South-central Brazil (CS) sugar output rose 30% from a year ago to 710,000 metric tons, data from Unica showed. The increase was recorded as mills allocated more sugarcane and smaller amounts for ethanol, data from Unica showed. S&P Global Community Insights's estimate was 689,000 metric tons, but actual output exceeded that. Sugar prices in New York fell as a result, and sugar traders reacted negatively to the high quota. Sugarcane crushing also rose 14.1%, meeting market expectations. Ethanol production also rose 7.2% to 841 million liters.
Basis bids for soybeans shipped to the U.S. Gulf Coast were higher, supported by tight supplies of oilseeds, but corn barge bids fell. Midwest farmers are focusing on spring sowing, but rain is likely to halt field work on Friday. Wheat prices on CBOT posted their biggest weekly gain in more than two years, while bids for soybeans and corn barges shipped from Gulf waters rose. However, FOB Basis offers held steady. Ukraine's 2023/24 grain exports fell year-on-year, but Argentina's Rosario port lost its position as the world's second-largest grain export hub, behind Brazil and the U.S.
The outlook for grain production in southern Africa is threatened by a shortage of rain caused by El Niño. The lack of production of corn is expected to exacerbate food insecurity for households and trigger higher food prices, according to the FAO. Food insecurity in southern Africa is expected to worsen by the end of 2024, with fears of a decline in farm household income along with rising prices. The governments of Malawi, Zambia and Zimbabwe have declared drought emergencies, with negative impacts expected on major grain crops. The FAO says measures to strengthen farmers' resilience are essential in preparation for the transition to the La Niña climate pattern.
Canada's grain output is expected to rise by nearly 5% in the upcoming marketing year, according to a report from the U.S. Department of Agriculture's Office of Overseas Agriculture (FAS). The surge in wheat production is forecast to hit 61.4 million tonnes, up 4.9% from last year when overall grain production was drought-stricken. Durham's output, in particular, is expected to rise significantly, with wheat exports rising while corn and oats falling. Corn imports are expected to fall 30% on improved moisture levels in prairie fat and increased domestic feed supplies.
GrainScanner updates new articles every week.
If you're interested in Greenlabs, please contact us.