Grain Highlights 06.06.2024

SovEcon has lowered its forecast for the 2024/25 wheat production in Russia to 80.7 million tons (82.1 in the previous estimate 10 days ago).

- SovEcon has lowered its forecast for the 2024/25 wheat production in Russia to 80.7 million tons (82.1 in the previous estimate 10 days ago). The decline is related to drought in the southern regions of the country. Andrey Sizov emphasized that there is potential for further reductions in the production.

- In Ukraine, the harvesting campaign of winter barley has begun. In the southernmost regions of the country, the harvesting campaign started at a rapid pace.

- During the period 01.07.2023 – 02.06.2024, the EU received over 17.6 million tons of major oilseeds (-18% compared to the previous year). Soy deliveries amounted to 11.9 million tons (-1%), rapeseed imports reached 5.1 million tons (-29%), and sunseed imports were 645,200 tons (-70%). The import of vegetable oils increased by 3%, including palm oil imports of 3.1 million tons (-19%), sunseed oil imports of 2.5 million tons (+54%), rapeseed oil imports of 430,540 tons (+16%), and soyoil imports of 491,700 tons (+2%).

- The European Commission has lowered its forecast for the 2024/25 rapeseed production in the EU by 0.3 million tons to 19.1 million tons (19.7 in 2023/24), and the corn production to 68.6 million tons (-0.6, +9% compared to 2023/24, +3% compared to the five-year average). Corn imports will reach 17.4 million tons (20 in 2023/24). The soft wheat production will be 120.2 million tons (unchanged, -4%, -5%), with exports of 31.1 million tons (33 in 2023/24). The barley production is expected at 7.1 million tons (unchanged, +21%, -2%), with exports of 10.3 million tons. The sunseed production is projected at 10.6 million tons (-0.1 compared to 2023/24).

- According to EIA data, during the week of May 25-31, 1.072 million barrels of ethanol were produced daily in the United States (1.068 a week earlier). At the end of the period, stocks decreased by 155,000 barrels to 23.052 million barrels.

- According to Anec data, in May, Brazil exported 13.36 million tons of soybeans (-7.3% compared to May 2023). For 2023/24, soybean exports will reach 102 million tons, and for 2024/25 - they are expected at 105 million tons.

- According to data from the Chinese Ministry of Agriculture, as of June 5, 2024, 57% of the winter wheat areas in China have been harvested. In the coming days, the weather in the production areas will be dry, and the production will be quickly gathered.

- According to CNGOIC estimates, during the week ending May 31, 2024, 2.16 million tons of soybeans were processed in China, which is 150,000 tons more than the previous week.

- On June 11, 2024, Jordan will hold a tender to purchase 120,000 tons of milling wheat of any origin. In the last three months, the country has not purchased wheat despite several tenders.

- South Korea's Feed Buyers' Group has purchased 65,000 tons of feed corn from South America at a price of 242.99 USD/ton with delivery by October 10, 2024.