Grain Highlights 02.06.2022

The Russian government has unexpectedly released from quotas some fertilizers - nitrogen and potassium. Last week, it extended fertilizer export quotas until end of 2022, opening export window in June

- Given the good condition of winter crops in Russia, yields are expected to increase above the average levels for the last five years, including average wheat yield of 4.12 tons/hectare and average barley yield of 3.46 tons/hectare.

- At the moment, 1.5 million tons of grain are blocked in Ukrainian ports, and 20 million tons of old grain are available for export in the country.

- South Korean POSCO International reports that they plan to export grain by land from the western parts of Ukraine.

- Yesterday, commodity funds in Chicago were net sellers of 22,000 contracts of corn and 16,000 contracts of wheat and net buyers of 4,000 contracts of soybeans.

- Anec estimates May corn exports from Brazil at 1.24 million tons (942,000 in April and 0 in May 2021).

- In their June report, analysts from StoneX raised their forecast for the soybean production in Brazil in 2021/22 by 1 million tons to 124.4 million tons (135.84 in 2020/21). The forecast for the corn production was also increased by 0.3% to 116.8 million tons, including first corn production of 26.4 million tons (+ 0.5%) and second corn production of 88.3 million tons (88.1).

- The Government of India has authorized the export of 469,200 tons of wheat to Bangladesh, the Philippines, Tanzania and Malaysia. In May, exports fell to 1.13 million tons from a record 1.46 million tons in April.

- In the new season, ​​wheat areas in Australia are expected to reach a record 14.45 million hectares (14 last year). The wheat production is projected to reach 30-35 million tons (36).

- Indonesia issued export permits for 179,464 tons of palm oil on June 2, 2022.

- In April and May, the Iranian government bought 2.246 million tons of wheat from local farmers, which is 510,000 tons more than the previous year.