COBANK: GRAIN, OILSEED PRICES CONTINUE TO SLIDE
Grain and oilseed prices continued to slide last quarter under pressure of a strengthening US dollar, arrival of the South American harvest and plentiful domestic inventories, according to a new quarterly report from CoBank’s Knowledge Exchange. Corn, grain sorghum, barley and oats all saw major reductions since last year, while soybeans, cotton, spring wheat and durum wheat each experienced increases, the report said. Low water levels on the Mississippi River are already raising concerns of slower grain and oilseed shipments ahead. Forecasts for US corn acreage are down 4.9% year-over-year with falling prices and a strong US dollar discouraging planting.
Planted acreage for sorghum is down 11% and combined barley and oat acreage is down 14%. Corn stocks are ample at 8.35 billion bushels, up 13% year-over-year. Exports have been strong, particularly to Mexico. Soybean acreage increased 3% to 86.5 million acres. Export commitments are down 19% on languishing Chinese demand and growing competition from a record South American crop. Spring wheat and durum picked up a surprising amount of acreage in the Prospective Plantings report, Ehmke said. Growing conditions among major exporters are not as favorable. Warm and dry conditions prevail in Ukraine and Russia, and excessive wetness plagues Western Europe.
(Link: WorldGrain)
CHINESE BUYERS CANCEL CORN SHIPMENTS AS BEIJING SUPPORTS FARMERS
Chinese importers won’t take delivery of four or five cargoes of Ukrainian corn previously booked for delivery between April and June. The cancellations took place within the past two weeks, and more shipments from the European country could be scuppered in the future. A cut in deliveries to the top importer could further weigh on global prices already under pressure after bountiful harvests in the US and Brazil. The cancellations come after Chinese customs officials asked traders to limit deliveries of foreign corn into bonded areas in a move aimed at easing domestic oversupply and supporting prices for farmers before the planting season.
(Link: VietnamAgriculture)
