CORN
Closing the first session of the week, March 6, slightly decreased by 1 USD/ton. According to a March 4 report, by agribusiness consulting firm AgRural, Brazilian farmers have harvested 4% of soybean acreage in the 2022/23 crop year, up 10 percentage points from a week ago. The company also estimates that the planting progress has completed 70% of the planned area so far, a strong increase of 15% compared to a year ago but still lower than last year.
CBOT corn prices continued to decline on March 7 and March 8, and March 9, world crude oil prices dropped on March 7 and had a negative impact on corn prices, in addition, the market was optimistic about the price of corn. grain export agreement in the Black Sea region may be extended. According to the March 8 supply and demand report, the USDA has revised up its estimate of Ukraine’s corn exports for the year to 23.5 million tons, 1 million tons higher than reported last month.
At the end of the last session of the week on March 10, CBOT corn price increased by 2.3 USD/ton after a consecutive decline this week, supported by buying demand on the trading floor. Concerns about the prospects for the corn harvest in Argentina contributed to the rebound in corn prices.
WHEAT
Wheat prices closed at the beginning of the week on March 6, down 4.9 USD/ton, bringing prices to the lowest level since September 2021, when the market was optimistic about the agreement on a safe corridor for exports. grain exports in the Black Sea region may be extended. Besides, the abundant supply of wheat exports from Russia with competitive prices continues to put pressure on world prices.
Closing session 07/03, wheat price recovered back to 1 USD/ton, after falling to the lowest level since September 2021. Up-to-date information on winter wheat crop conditions in the US is also receiving much attention from traders. However, on the 8/3 session, the price of CBOT wheat continued to decrease by 3.9 USD/ton. In its March 8 supply and demand report, USDA still estimates Russia’s 202223 wheat exports at a very high level of 43.5 million tons.
Wheat prices recovered back to 5 USD/ton. Traders await announcement on whether the deal to export grain in the Black Sea will be extended.
SOYBEAN AND SOYBEAN MEAL
Contrary to the market trend, the price of soybeans and CBOT soybean meal ended the week with an increase of 3.8 USD/ton and 13.3 USD/ton, respectively. In which, soybean meal prices increased for the fourth consecutive session. Due to growing concerns about the crop situation in Argentina – the world’s largest soybean meal exporter. In early March, BAGE said it plans to make further cuts to Argentina’s 2023 soybean harvest forecast, as the country faces many difficulties due to the impact of historic drought and frost effect.
Soybean seed and soybean meal prices turned lower on March 7, 8 and 9 as ample supply from the Brazilian harvest was a factor helping to limit the price rally and after USDA cuts Argentina’s harvest to below market expectations.
At the end of this week, soybean and soybean meal prices fell by 1.3 and 1.1 USD/ton, respectively. Abundant supplies from the rapidly accelerating harvest in Brazil have generally kept downward pressure on world soybean and soybean meal prices for the time being.
VIV Asia 2023 Bangkok, Thailand
8-10 March 2023
VIV Asia is organized every 2 years in Bangkok, located in heart of the Asian booming markets. With around 1,250 international exhibitors and 50,000 expected professional visits from all over the world, VIV Asia covers all animal species including pig, dairy, fish and shrimp, poultry broilers and layers, cattle and calves. The current VIV Asia value chain already covers a part of the downstream meat production.
