CHINA CANCELING US EXPORTS AS GLOBAL WHEAT PRICES DROP
Private exporters have canceled the sale of 504,000 tonnes of US wheat for delivery to China. The three cancellations occurred on March 7, 8 and 11, according to the USDA. China’s cancellations of soft red winter (SRW) wheat are due to falling global wheat prices. FOB prices for Russian and Ukrainian wheat have dropped below $200 per tonne, while US SRW prices are over $220 per tonne. Russia’s exports are further aided by their weak currency. In the last year, the Russian ruble versus the US dollar is down 15%. Last week, China’s finance ministry said it will spend 140.63 billion yuan ($19.6 billion) on stockpiling grains, edible oils and other materials, an increase of 8.01% from last year.
(Link: WorldGrain)
POOR WEATHER PARES BRAZIL’S GRAIN OUTLOOK
Poor weather in Brazil’s key growing regions is expected to lower grain production to 295.6 million tonnes for the 2023-24 season, down 24.2 million tonnes (7.6%) from the previous year, according to a report from CONAB. With harvest reaching nearly 48% of sown area at the start of March, soybeans could reach 146.9 million tonnes, a reduction of 5% over the previous harvest. CONAB lowered its exports projection to 92.33 million tonnes from an estimated 94.16 million tonnes in its previous report. The imports forecast was raised from 200,000 tonnes to 800,000 tonnes.
The planting of second-crop corn is taking place in the main producing states, such as Mato Grosso and Paraná. Area planted to corn is expected to fall by 8.3% to an estimated 15.76 million hectares, CONAB said. Weather has favored the crop’s cultivation, except for part of Mato Grosso do Sul. The expectation is for 87.35 million tonnes of corn to be produced in the second harvest alone. The harvest of the first crop, for which 23.41 million tonnes are projected. Total production is estimated at 112.75 million tonnes. For rice, the planted area of 1.55 million hectares (up 4.7%), is expected to produce 10.55 million tonnes. Production of wheat, the main winter crop, is seen at 9.6 million tonnes.
(Link: WorldGrain)
