Grain Highlights 22.03.2023

Agroconsult raised its forecast for the 2022/23 soybean production in Brazil by 2 million tons to 155 million tons (+29.5 vs. 2021/22) despite the drought in Rio Grande do Sul, exports are projected at 96 million tons (78.7) and processing in the country is estimated at 53.9 million tons (+4.5).

- Rosstat expects a decrease in sunseed areas in Russia in 2023 by 5-10% compared to 2022. In 2022, the sunseed production was 14.5 million tons, soybean production reached 5.8 million tons and rapeseed production reached 4.5 million tons.

- Over the period of 01.07.2022 – 19.03.2023, the export of soft wheat from the EU reached 22.13 million tons (+8% compared to the previous season). The largest exporter was France with 8.69 million tons of wheat, followed by Romania with 2.77 million tons, Germany with 2.6 million tons, Lithuania with 1.97 million tons and Poland with 1.86 million tons. The main recipients of European wheat were Morocco with 3.52 million tons, Algeria with 3.07 million tons, Nigeria with 1.92 million tons, Egypt with 1.62 million tons and Saudi Arabia with 1.04 million tons.

- Bulgaria, Romania and Poland will receive EUR 56 million in compensation from the EU in connection with damages caused by Ukrainian exports, including 16 million tons for Bulgaria, 10 million tons for Romania and 30 million tons for Poland.

- Chicago commodity funds were net sellers of 2,500 contracts of corn, 8,500 contracts of soybeans and 5,000 contracts of wheat yesterday.

- Agroconsult raised its forecast for the 2022/23 soybean production in Brazil by 2 million tons to 155 million tons (+29.5 vs. 2021/22) despite the drought in Rio Grande do Sul, exports are projected at 96 million tons (78.7) and processing in the country is estimated at 53.9 million tons (+4.5). The corn production will reach 125.5 million tons (-5.4 compared to January and 113.1 in 2021/22), including second corn production of 97.2 million tons. Exports are expected to exceed 50 million tons.

- FAS USDA forecast production of vegetable oils in China in 2023/24 of 29 million tons (28.4 in 2023/24), including soyoil with a share of 58.7% and rapeseed oil with a share of 24.1%. The import of oils will reach 11.27 million tons, including a record 7.1 million tons of palm oil.

- Heavy rains in the central and western regions of India in recent days have caused significant damage, especially to wheat crops. Rainfall fell just before the start of harvesting campaigns in the major producing states of Punjab, Haryana, Uttar Pradesh and Madhya Pradesh.

- Algeria has announced a tender for the purchase of 70,000 tons of feed corn from Argentina and Brazil with delivery within April-May.

- Soft wheat stocks in Morocco are sufficient to meet domestic demand only for the next three months (five months a year earlier). Due to high grain prices and a poor production, stocks have fallen to such a low level.

- According to data from the Ministry of Agriculture of Egypt, another 124,000 tons of corn and 16,000 tons of soybeans were released for import from their ports. The problems with imports are related to the payments of the cargoes and their release from the ships.