CEREAL PRICES JUNE 5, 2024: REVERSE FROM THE LOWEST LEVEL IN TWO WEEKS
Soybean prices rose as crop losses due to floods in Brazil strengthened the market, while corn prices rose. Market estimates for Russia’s wheat production have stabilized between 82-85 million tonnes following the recent frost and drought. In Ukraine, production appears to be largely unaffected. The most active wheat contract on the Chicago Board of Trade rose 0.5% to 6.61-1/4 bushel. Soybean prices increased 0.8% to 11.88-3/4 bushels and corn prices increased 0.1% to 4.42-3/4 bushels.
Forecasts of reduced wheat production in Russia sent wheat prices to a 10-month high last week. For soybeans, damaged season losses related to recent flooding in Brazil’s southernmost state of Rio Grande do Sul were estimated at 2.71 million tons. Consulting firm StoneX said the country’s second corn mission is expected to reach 93.5 million tonnes in the 2023/24 crop year, down from the 97.3 million tonnes it had estimated in 2023/24. May 2024. In Argentina, soybean sales in May nearly doubled compared to the previous month, due to dry conditions and improving international prices.
(Link: VinaNet)
FIRES IN BRAZILIAN WETLANDS SURGE 980%, EXTREME DROUGHT EXPECTED
Satellite data from Brazil’s National Institute for Space Research (INPE) showed a 980% increase in the number of fires in the Pantanal through June 5, compared with the same period of last year. The figures have raised alarms as the region heads into the riskiest season for wildfires, which usually starts in July and peaks in August and September. The Pantanal wetlands, roughly 10 times the size of the Florida everglades, are home to jaguars, tapirs, caimans, anacondas and giant anteaters.
Weak rains since late last year have disrupted the usual seasonal flooding, leaving more of the region vulnerable to fires. The latest surge in fires comes after atypical blazes at the end of 2023, when the El Nino climate phenomenon delayed the rainy season, leading to 4,134 fires registered in November, compared with an historical average of 584 for the month. Brazil’s government signed a pact on Wednesday with state governors in the Pantanal and Amazon regions to fight wildfires.
(Link: Reuters)
