Agriant Commodities------------ 6-11-2022 Grain and Feed News
- Ceyhun Besli
- Nov 7, 2022
- 5 min read
Agriant Commodities------------ 6-11-2022 Grain and Feed News
Hot Topics----------------------
Here’s what we know:
After suspending its participation in a grain deal brokered by Turkey and the U.N., Moscow said it wouldn’t guarantee security for any cargo vessels crossing the Black Sea.
November 3, 2022 Russia has said it would resume its participation in a deal freeing up grain exports from Ukraine, reversing a decision that world leaders warned would increase hunger globally. Russia, whose forces invaded Ukraine on Feb. 24, announced the reversal on Wednesday after Turkey and the United Nations helped keep Ukrainian grain flowing for several days without a Russian role in inspections.
The defense ministry justified the resumption by saying it had received guarantees from Ukraine that it would not use the Black Sea grain corridor for military operations against Russia.
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Wheat -----------------------
Wheat DEC '22 (ZWZ22)
847 Closing
Chicago wheat market (CBOT) jumped about 70 US cents at the start of the week, following reports that Russia had backed out of a UN-brokered grain deal in response to a Ukrainian drone attack in Crimea.
The grain corridor deal — which had been running successfully for three months — appeared to have been sunk.
Grain ships reportedly kept on sailing out of Ukraine regardless and by Thursday, Russia said it would resume its participation in the deal — and wheat futures retreated back to their starting position.
Chicago wheat lost more ground on Thursday after Russia said it would resume participation in a Black Sea grain export deal, reversing its decision and easing concerns over food supplies.
Flooding and excessive rains across key parts of Australia's wheat growing areas have resulted in extensive damage to what was expected to be a record bin-busting high quality crop just a few weeks ago, exacerbating concerns over world food supplies.
A lower quality crop in Australia, the world's No.2 supplier of the grain, comes as dryness in North America and the Russia-Ukraine war curb global supplies, fuelling red-hot food prices.
Wheat, Ukraine 11.5 pro # 300 FOB / 385 usd Container Asia PK -HCMC-JKT-BKK
Wheat, Russia 12.5 pro # 315 USD FOB
Wheat, Romania 12.5 # 330 USD ,
Wheat, milling, 12.0%, Argentina, Upriver 380 USD FOB
Wheat, feed, Black Sea # 370 usd Container Asia
Wheat SRW # 370 usd FOB GULF
Wheat Australia SFW # Asia Main Ports #355 usd
Wheat Australia ASW # Asia Main Ports #375 usd
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Soybean & Soybean Meal --------
Soybean NOV '22 (ZSX22)
1451 Closing
Soybean Meal DEC '22 (ZMZ22)
419.4 Closing
Soybean planting in Argentina’s core farm belt region is far behind last year’s pace due to a lack of rain, the Rosario grains exchange said in a report on Friday, a concern for farmers in the world’s top exporter of soy oil and meal.
The protracted drought, linked to a third straight La Nina climate pattern, has hammered wheat production and now threatens to affect the upcoming soy and corn season, with farmers likely to invest less in planting unless conditions improve.
“The extreme climatic conditions now put soybean planting on the ropes. A year ago half of the soybeans in the region had already been planted, today only 250,000 hectares, that is, only 5%,” the exchange said in the report.
It added there was no rain forecast in the region, one of the country’s main growing areas, over the next week. The exchange’s current forecast is for nationwide planting of 17 million hectares of 2022/23 soy.
“It is the most difficult and uncertain planting of the last 12 years,” it added, saying the producers in the farm belt region were on a “strict war economy” footing.
The Rosario exchange warned that the weather forecast for the first two weeks of November was not encouraging and rains in recent weeks, while helping improve reserves in some areas, had not made enough of an impact.
“The extreme drought that the region has endured means that there’s still a very significant deficit (of water),” it said.
Argentina is the world’s leading exporter of processed soybean oil and meal, the country’s top source of export revenue. The sowing of the oilseed usually begins in October in the South American country.
Chicago soybeans futures slid on dropping from last.session's six-week high, after China denied it was considering easing its zero COVID-19 policy…
Soymeal, 48% protein, FOB NOLA #510USD
Soymeal, 47% pro, FOB Argentina # 485 USD October
Soybeans, FOB NOLA #600 USD
Soybeans, Brazil, FOB #605 USD
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Corn ----------------
Corn Sep '22 (ZCZ22)
681 Closing
U.S. corn =futures dipped in Asian trading on Friday, while wheat held firm near the previous session’s 10-week high and was set for a weekly advance on Black Sea supply concerns.
Corn were also set for weekly gains as traders assessed the impact of dry weather in crop areas of Argentina and the U.S. Plains.
Corn, USA 2YC FOB NOLA 340USD
Corn, USA 2YC FOB PNW 340USD
Corn, FOB Argentina port, Upriver#300 USD
Corn, FOB Romania 280USD
Corn, FOB Russia – 280USD
Corn, FOB Ukraine, 260 USD via Romania
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Other Container Prices -------------------
USA DDGS
CNF Indonesisa 360 Usd
CNF South Korea 350Usd
CNF Taiwan 370 Usd
CNF Philipines 380 Usd
CNF Malaysia 360 Usd
CNF Vietnam 370 USD
USA Corn Gluten Feed, USA FOB 880 usd
UKRAINE Sunflower-# – CNF Main Port Asia – 405usd
AUSTRALIA Feed Barley CNF Main Port Asia – 340usd
Freight----------------Freightos Baltic Index (FBX): Global Container Freight Index
$3,364
Container spot rates on the Asia-Europe and transpacific tradelanes are on course to dip below pre-pandemic levels before the end of the year.
However, ocean carriers’ operating costs are significantly higher than they were in 2019, which could force more exposed lines back into the red in the first quarter of 2023.
According to Lars Jensen, CEO of Vespucci Maritime, given the extremely weak demand, the sharp decline in spot rates was “inevitable”.
But he added that after rates had bottomed out, there could be a bounce-back in demand, which would support a freight rate recovery.
Both Maersk and ONE reported material weakness in their liftings at third-quarter earnings calls this week, with Maersk down 7.6% and ONE down 9% in the period, compared with the previous year.
Meanwhile, the spot market indices are unable to keep pace with heavy discounting on exports from China. For example, Drewry’s WCI North Europe component declined by a relatively modest 4% this week, to $3,684 per 40ft, after falling by over a third since September.
Argentina / China/ Panamax, #55 USD (TO)
Argentina / Indonesia Panamax, #60USD (TO)
USA PNW / China /Panamax ,#38USD
BS /Turkey ------ / Handy #30 USD
BS /China /Panamax #62 USD
BS / Indonesia Panamax #58 USD
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AGRIANT COMMODITIES present information based on sources /news there are no guarantees as to the accuracy or completeness of the information contained herein whether in an Copyright © 2022
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