Grain Highlights 17.09.2022

In the past two weeks, Chinese traders have bought about 30 carloads of soybeans from Argentina. Argentinian soybean prices are very competitive and demand from China is gradually increasing.

- As of September 15, 2022, 96.4 million tons (gross) of wheat were harvested in Russia (70.8 in 2021). The harvested grain was 132.3 million tons (99.4). The harvested sunseed is 1.5 million tons with an average yield of 2.2 tons/hectare (1.65 in 2021). 7.4 million hectares were sown with winter cereals.

- From September 21, 2022, the export tax on Russian wheat will be 2,668.3 rubles/ton. The export tax on barley will be 2,353.9 rubles/ton and the export tax on corn will be 3,696.5 rubles/ton.

- Since the beginning of September, the accumulation of wagons loaded with grain on the borders of Ukraine decreased by 37% to 5,316 units. As of September 15, 2022, the daily crossing of wagons across the border increased to 579 (469 at the beginning of the month).

- According to an assessment by the Conflict Observatory, as of 15.09.2022, 15.73% of the grain storage facilities in Ukraine have been destroyed.

- As of September 15, 2022, the harvesting campaign in Ukraine was carried out on 6.77 million hectares (61% of the area), with an average yield of 3.84 tons/hectare for cereals and 26 million tons of grain harvested. Wheat was harvested on 99% of the areas and 19.2 million tons of wheat were harvested. Barley was harvested 100% of the areas and 5.5 million tons were harvested. Corn was harvested on 0.3% of the areas and 63,700 tons were harvested at an average yield of 5.23 tons/hectare. Sunseed was harvested on 10% of the areas, 924,000 tons of sunseed were harvested at an average yield of 2.41 tons/hectare. The harvesting campaign of rapeseed has been completed and 1.092 million tons have been harvested.

- Strategie Grains forecasts a 2022 corn production in the EU of 53 million tons, which is the lowest level for the last 15 years. The total grain production will be 264.6 million tons (-2.5 compared to the previous estimate and -25.7 compared to 2021). The soft wheat production will be the lowest for the last five years, 124.1 million tons (129.8 a year earlier). Feed grain consumption (corn, wheat and barley) will decrease by 5% compared to 2021 to 148.6 million tons.

- FranceAgriMer lowered their forecast for wheat exports from France to countries outside the EU in 2022/23 by 0.3 million tons to 10.3 million tons (8.8 in 2021/22). Ending wheat stocks in France for 2022/23 will be 2.4 million tons (+0.3 compared to 2021/22).

- According to FranceAgriMer data, as of 12/09/2022 in France, 14% of the areas with corn were harvested (+9% for the week). 43% of crops are in good and excellent condition (43% a week earlier and 89% a year earlier).

- According to data from the Buenos Aires Grain Exchange, due to the drought in some areas, the harvesting campaign of wheat will not be carried out, because the crops will dry up. As of 09/15/2022, drought has covered 46% of wheat areas (29% a month earlier). 34% of crops are in poor and satisfactory condition (18% a month earlier). This is the worst drought in the last 30 years.

- Over the period of January - August, the import of wheat in Azerbaijan reached 539,330 tons (480,960 a year earlier), and wheat imports in August alone were 109,530 tons.

- Turkey raises the import tax on sunseed oil from 0% to 10%.