Grain Highlights 02.06.2021

AgRural lowered its forecast for the second corn crop in Brazil by 5 million tons to 60 million tons, which is 17 million tons less than the initial estimate for the season.

- The Hydrometeorological Center of Russia forecasts an average yield of winter cereals of 3.4 - 3.6 tons/hectare in 2021, which is 0.27 tons/hectare less than 2020.

- As of 30.05.2021, 84% of the planned areas for soybeans have been sown in the United States, which is below market expectations. A year earlier, 74% of the areas were sown and the average for the last five years is 67%.

- According to USDA data, as of May 30, 2021, 48% of winter wheat crops in the United States are in good and excellent condition (47% a week earlier and 51% a year earlier). 97% of the planned areas are sown with spring wheat and 45% of the crops are in good and excellent condition (80% a year earlier). The sowing campaign of corn is completed on 95% of the areas (90% a week earlier and 92% a year earlier) and 76% of the corn crops (74%) are in good and excellent condition.

- In April,10.4 million tons of corn were used for ethanol production in the United States (+67% compared to April 2020 and -2% compared to March 2021).

- The Brazilian agency Safras & Mercado has lowered its forecast for the second corn crop in Brazil in 2020/21 by 9.2 million tons to 61.5 million tons. The forecast for the three corn crops in the country has been lowered by 8.9 million tons to 95.2 million tons. Authorities have warned the public about a state of emergency regarding rainfall, which is happening for the first time in 111 years.

- AgRural lowered its forecast for the second corn crop in Brazil by 5 million tons to 60 million tons, which is 17 million tons less than the initial estimate for the season. The indicator will be the lowest for the last five years. StoneX Group also lowered its forecast to 89.68 million tons from 100.25 million tons in the May estimate.

- The Indonesian state agency Bulog has canceled a tender for the purchase of 240,000 tons of feed wheat with delivery in August - November.