Grain Highlights 22.09.2021

SovEcon has raised its forecast for the Russian wheat production in 2021 by 0.2 million tons to 75.6 million tons given the good yields in Siberia.

- SovEcon has raised its forecast for the Russian wheat production in 2021 by 0.2 million tons to 75.6 million tons given the good yields in Siberia. The wheat production in the region is expected to reach 10.7 million tons (+1 million tons compared to 2020), which is the highest level for the last 12 years.

- According to the European Commission, 6.5 million tons of soft wheat were exported from the EU in the first 12 weeks of the season (4.58 years earlier). The main buyers are Algeria with 0.811 million tons, the Republic of Korea with 0.726 million tons and Egypt with 0.442 million tons. Barley exports reached 6.783 million tons (4.775 for 2020/21 and 2.128 for 2019/20), including 0.602 million tons for China, 0.458 million tons for Saudi Arabia and 0.311 million tons for Jordan. Corn exports totaled 0.289 million tons (0.268 and 0.377).

- Yesterday, commodity funds in Chicago were net sellers of 3,000 contracts of corn and 6,500 contracts of wheat and net buyers of 6,500 contracts of soybeans.

- According to data from the Ministry of Agriculture of Argentina, as of 15.09.2021, farmers in the country have sold 30 million tons of the 2020/21 soybean crop (31.6 years earlier) and 40.4 million tons of corn (+3.6). Sales of wheat from the new 2021/22 crop totaled 6.7 million tons and the harvesting campaign will begin in November.

- According to Oil World, soybean processing in Argentina reached 3.57 million tons in August compared to 3.85 million tons in July and 3.43 million tons in August 2020. The decline may continue over the months of September - October. Soyoil stocks at the end of the period were 276,000 tons (323,000) and soymeal stocks reached 1.06 million tons (1.27). Since the beginning of the year, soybeans crush in the country reaches 29.5 million tons (26) and sunseed crush adds up to 2.48 million tons (2.05).

- In 2020/21, China bought a record 1.08 million tons of Ukrainian sunseed oil, which is 10% more than 2019/20. The share of Chinese purchases reaches 20% of total exports of Ukraine (15% a year earlier). During the season, 1.7 million tons of sunseed oil were delivered to China (-3% compared to the previous year and a share of 64% was from Ukraine). Imports of sunseed oil from Russia reached 440,000 tons (-41% and a share of 26%).

- Pakistan has announced a tender for the purchase of 640,000 tons of wheat of any origin and delivery within January - February.

- In 2022, Indian farmers will harvest a record 150.50 million tons of grain from spring crops (149.56 in 2021). The 2022/23 rice production is projected to reach a record 107.04 million tons (104.41). The country will owe a 45% share of world's total rice exports. The corn production is estimated at 21.24 million tons (unchanged) and oilseed production is expected at 23.4 million tons (24).