Grain Highlights 03.04.2023

In its first assessment, the European Commission forecasts a 2023/24 EU soft wheat production of 130.9 million tons (126 in 2022/23), domestic consumption of 99.1 million tons (98.8), soft wheat exports of 32 million tons (32) and ending stocks of 21.9 million tons (18.1).

- The Ministry of Agriculture of Russia has received a notification from the Louis Dreyfus Company that as of 01.07.2023 the company is ceasing operations on the Russian market. ADM does not plan to leave the segment of deep processing of grain in Russia.

- In March, 2.246 million tons of grain were exported from the Russian port of Novorossiysk, including 2.185 million tons of wheat, 31,000 tons of barley and 30,000 tons of peas. In February, exports reached 1.59 million tons, including wheat exports of 1.513 million tons and barley exports of 77,000 tons.

- In its first assessment, the European Commission forecasts a 2023/24 EU soft wheat production of 130.9 million tons (126 in 2022/23), domestic consumption of 99.1 million tons (98.8), soft wheat exports of 32 million tons (32) and ending stocks of 21.9 million tons (18.1). Barley production will be 54.2 million tons (+2.7), domestic consumption will reach 42 million tons (42), export are estimated at 10 million tons (+1) and ending barley stocks are projected at 10 million tons (+3.7). Corn production will reach 65 million tons (52.1), domestic consumption will reach 75.1 million tons (74.9), imports are expected at 18 million tons (23) and ending stocks are estimated at 21.9 million tons (18.6). Rapeseed production is projected at 19.8 million tons (19.6), domestic consumption at 24.8 million tons (25.3), rapeseed imports at 5.8 million tons (6.2) and ending rapeseed stocks at 0.8 million tons (0.5). Soybean production will reach 2.9 million tons (2.5), domestic consumption will reach 16.5 million tons (16.5), soybean imports are predicted at 14 million tons (14) and ending soybean stocks are estimated at 1.3 million tons (1.2). Sunseed production is projected at 10.9 million tons (+1.7), domestic consumption is estimated at 11.8 million tons (+0.8), imports are expected at 1.5 million tons (-0.7) and ending sunseed stocks will be 0.9 million tons (0.9).

- From March 2022 until now, the export of Ukrainian grain through the EU reaches 25 million tons and another 22 million tons via the sea corridor.

- AHDB have raised their forecast for UK wheat exports in 2022/23 by 0.4 million tons to 1.5 million tons (0.51 in 2021/22). Imports will reach 1.2 million tons (-0.1 and 2). Domestic consumption of wheat will be 14.6 million tons (14.6) and wheat production is expected to reach 15.5 million tons (15.5 and +1.5).

- On Friday, Chicago commodity funds were net buyers of 5,000 contracts of corn, 11,000 contracts of soybeans and 1,000 contracts of wheat.

- According to Oil World's forecast, biodiesel production in Argentina will reach 1.35 million tons in 2023 (1.91 in 2022), which is the lowest level for the last three years. Exports will also be the lowest for this period at 0.7 million tons (1.25). Biodiesel production in Brazil will be 6.15 million tons (5.5).

- According to CNGOIC data, in the week ending on 24/03/2023, soybean processing in China reached 1.5 million tons (-3% compared to the previous week, -10% compared to the same week in February, +23% compared to the previous year).