COMMODITIES CLOSE DOWN FOR THE YEAR
Corn, wheat, and soybeans closed out 2023 with steep declines after bumper harvests in Brazil and ongoing Black Sea trade lessened concerns about weather and war, Reuters reported. The most active corn contract closed down 31%, wheat fell 21% for the year while soybeans lost 15%. Grain and oilseeds are ending a run of several years of price gains due to harvest setbacks, the pandemic, and Russia’s invasion of Ukraine.
Brazil and the United States had record corn harvests, which helped offset severe drought in Argentina. Rainfall in Argentina at the end of the year is helping farmers in sowing the next corn and soybean crops. Large wheat exports from Russia and a revival in shipments from Ukraine through a new shipping channel have helped grain markets. Crop markets may face tighter supplies in 2024 due to El Niño-related weather effects, export restrictions, and higher biofuel mandates.
(Link: WorldGrain)
CHINA PROMOTES GRAIN OUTPUT IN NEW LAW
Protecting farmland and promoting grain production are among the goals of a new food security law adopted by China’s National People’s Standing Committee, China Daily reported. One of the main concerns of the law is protecting farmland from development and urban encroachment to ensure adequate grain production. The law calls for the government to restrict the occupation of farmland and its conversion to other uses such as forests or grasslands. The law includes a series of measures to promote grain production, ensure income for grain growers, and compensate major grain-producing areas, as well as cultivate new types of agribusiness.
(Link: WorldGrain)
