Grain Highlights 05.09.2022

In August, India almost doubled its palm oil imports to an 11-month high.

- During the week starting on 07/09/2022, the export tax on Russian wheat will be 3,368.9 rubles/ton (4,053.8 a week earlier). The export tax on barley will be 2,699.2 rubles/ton (2,729.3) and the export tax on corn will be 3,663.7 rubles/ton (3,569.9).

- In the second half of 2022, Russia has the opportunity to deliver up to 30 million tons of grain to world markets. According to various analysts, the grain production will be around 145 million tons. Over the July-August period, wheat exports were 5.9 million tons, which is the lowest level since 2017/18. Wheat exports of 4.1 – 4.3 million tons are expected in September (4.7 in September 2021).

- In August, 1,144 million tons of grain were exported from the Russian port of Novorossiysk (1,668 a year earlier), including 880,000 tons of wheat (1.525 million tons) and 264,000 tons of barley (143,000).

- In August, Ukraine exported 4.5 million tons of grain and oil crops and their processing products (+66% compared to July). Corn exports were 1.8 million tons (+0.7 compared to July and 0.3 in August 2021), wheat exports were 899,627 tons (+488,000 and +25%), sunseed were 154,000 tons (362,000 in July), sunseed meal were 286,000 tons (141,000 and + 102,000), barley exports were 207,000 tons (+23,000 and -1.5 million tons), sunseed oil exports reached 391,000 tons (+8.56% and +52%) and rapeseed exports were 624,000 tons (91,000 and 782,000).

- In August, Brazil's wheat imports are expected to reach 536,600 tons (-9.7% compared to August 2021). In July, imports were the lowest for this month of the year since 2017. The average price of wheat imported in July was 441 USD/ton (276.3 in July 2021). In 2022, the wheat production in the country will reach 10 million tons (compared to a previous record of 7.6 in 2021).

- In order to stimulate farmers and exporters in Argentina to sell and export soybeans produced in the country, the government has fixed a preferential exchange rate for dollars. When selling 1 ton of soybeans, an exchange rate of 200 pesos to the dollar can be used, while the official rate is 139 pesos to the dollar. This will be valid during the period of September 5 - 30.

- According to a Reuters survey at the end of August, palm oil stocks in Malaysia exceeded 2 million tons for the first time in two years on the back of production growth. The indicator reached 2.03 million tons (+14.5% compared to the end of July) and is the highest since April 2020. Production in August reached 1.7 million tons (+8%), which is the highest result for the last 10 months. Exports in August reached 1.32 million tons (-0.14%) against the background of strong competition from Indonesia.

- In August, India almost doubled its palm oil imports to an 11-month high. 1.03 million tons of palm oil were imported (+94% compared to July). During the month, the palm oil price was USD 1.011/ton C&F compared to 1.443 USD/ton C&F of soyoil. Soyoil imports were 240,000 tons (-50%) and sunseed oil imports were 143,000 tons (-8%).

- The state company of Egypt GASC has announced a tender for the import of 30,000 tons of soyoil and 10,000 tons of sunseed oil with delivery within 20.10 - 30.11.2022.

- According to Oil World's forecast, over the July-September period, the top 5 sunseed oil exporters in the world exported 2.3 million tons of sunseed oil (+0.4 compared to last year). During the period, exports will reach 920,000 tons from Russia (810,000), 890,000 tons from Ukraine (620,000) and 220,000 tons from Bulgaria (150,000). The forecast for the export of sunseed oil in 2022/23 is 10.6 million tons (+8% compared to 2021/22). Exports from Russia will be 4.35 million tons (3.46) and exports from Ukraine are projected at 4.3 million tons (4.47).