After wheat and sugar, INDIA may curb rice exports
Corn
CBOT corn price decreased 5,7 USD/ton on May 24, after receiving the USDA’s weekly update report showing that the speed of planting new crops in the US continued to be accelerated. By the session of May 26, it decreased by 2.8 USD/ton.
In the coming time, Argentine farmers will focus on harvesting corn and speeding up the rate to help increase supply to the market.
According to a recent report by the food agency CONAB, Brazilian farmers have begun harvesting safrinha corn, estimated to complete about 0.2% of the area. This is the main crop for Brazilian exports, which is estimated to usually account for about 77% of the total annual production.
Wheat
Closing the session at the beginning of this week on May 23, CBOT wheat price returned to 7.9 USD/ton, after having dropped sharply for the previous 3 consecutive sessions. Wheat prices closed down another 1.8 USD/ton on May 26. On this day, it is expected that the SHUN TONG ship carrying nearly 33,000 tons of Argentine wheat will return to Vietnam.
Concerns about the tightening global supply situation this year are still an important factor affecting/limiting the decline in world wheat prices.
Soybean meal
Closing the first session of this week, the CBOT’s price of soybean meal fell and was 8.2 USD/ton due to selling pressure to take profit on the trading CBOT after strong gains at the end of last week.
On May 26, the CBOT’s price increased by 4.4USD/ton. In Argentina, soybean meal harvest has entered its final stage.
The price increase was also supported by the strong rise of soybean oil on May 26. This week, India allowed duty-free import of 2 million tons of crude soybean oil, thereby helping this commodity become more competitive.
In New Delhi: The government may consider export restrictions on rice after wheat and sugar to ensure adequate domestic supplies and prevent a rise in prices. Sources say restrictions on rice could be similar to those on sugar whose exports have been capped at 10 million tonnes. India exported $6.115 billion of non-Basmati rice in FY22 and was the top forex earner across all agri commodities last fiscal.
