Grain Highlights 28.02.2024

According to market operators, last week China purchased 240,000 tons (4 cargoes) of corn from Ukraine, with some reports indicating purchases of 10 cargoes.

- According to market operators, last week China purchased 240,000 tons (4 cargoes) of corn from Ukraine, with some reports indicating purchases of 10 cargoes. The transaction prices ranged from 227 to 230 USD/ton Cost and Freight (C&F) with delivery scheduled for March to May. With freight at 62–63 USD/ton, the Free on Board (FOB) price in Ukraine was 165–168 USD/ton. There is a possibility that the price is 10 USD/ton higher to account for reduced risk in the Black Sea for Chinese carriers and the route through the Red Sea. Similar FOB prices for corn exist in Brazil, Argentina, and the United States. Overall, there is not much significant difference.

- According to preliminary estimates by Anec, Brazil is expected to export 10.59 million tons of grains and oilseeds (soybeans, soymeal, corn, and wheat) in February, which is 2.38 million tons more than January. Soybean exports will be 7.3 million tons (2.3), soymeal exports are expected at 1.8 million tons (1.7), corn exports are projected at 716,700 tons (3.4 million tons), and wheat export will reach 715,800 tons (685,200).

- Authorities in Indonesia plan to accelerate the pace of replanting palm plantations in the country. A subsidy of 3,833.87 USD/hectare is envisaged for small farmers. In 2016, a plan was made to replant 2.5 million hectares of palm plantations by 2025. So far, this plan has only been implemented on 15%.

- Algeria has announced a tender to purchase 80,000 tons of corn from Argentina and Brazil and 35,000 tons of soymeal of unspecified origin with deliveries scheduled for March to April.

- Jordan has purchased 60,000 tons of wheat of unspecified origin at a price of 240 USD/ton C&F with delivery in July. At the previous tender, 50,000 tons of wheat were purchased at a price of 240.5 USD/ton C&F.