Grain Highlights 19.07.2021

Corn processors in Brazil are actively concluding contracts for the purchase of Argentine corn with delivery within October - December.

- Corn processors in Brazil are actively concluding contracts for the purchase of Argentine corn with delivery within October - December. The volumes are so large that they will hinder the normal operation of Brazilian ports. These purchases are a major factor in holding back the growth of Brazilian corn price on the domestic market.

- The authorities in Brazil have increased the mandatory blending of the biocomponent in diesel fuel from 10% to 12% for the period of September - October. According to Abiove's forecast, the blending percentage will reach 13% over the period of November-December,14% for the period of January-March and 15% over April-December .

- Over the week of July 12-18, 128,948 tons of grain were exported from the Russian port of Novorossiysk, which is 80% more than the previous week and 51% less than last year. Only wheat was exported.

- According to data from the July report of Oil World, the world's soybean production will reach 379.4 million tons in 2021/22 (+1.3 million tons compared to the previous estimate and +19.8 million tons compared to 2020/21). Soybean production is projected to reach:

  • Brazil - 142.8 million tons (140 and 136.3)
  • Argentina - 48 million tons (49.2 and 43.6)
  • Canada - 6.23 million tons (6.56 and 6.36)

World's ending stocks are expected to reach 103 million tons (98.7 and 95.4), including:

  • United States - 5 million tons (4.5 and 4.4)
  • Brazil - 32.1 million tons (30.5 and 30.2)
  • Argentina - 34.18 million tons (34.4 and 33.8)

Soybean processing estimate was reduced to 326 million tons (326.7 and 319.9), including 58.7 million tons in the United States (-0.8).

- Bangladesh has rejected all offers to buy 50,000 tons of milled wheat due to high prices. The lowest tender price was 335 USD/ton C&F.