Ag commodities markets expectant of January USDA report
There was little change in Ukraine on Friday, Jan. 7, as the market was tight due to a bank holiday. While wheat prices were almost unchanged, there was a slight drop in corn prices, the Agritel consultancy writes.
Wheat prices rose slightly on Euronext on Friday, while corn prices were unchanged. Once again, rapeseed was the main focus of attention, with prices skyrocketing at the unprecedented level of 828 EUR/t on the February delivery.
Reportedly, the USA sold 176,784 tons of corn to Mexico and 120,000 tons of soybean to an undisclosed destination. China sold just over 500,000 tons of its reserve stocks to its domestic market.
On Euronext, wheat recorded a loss for the week. The USDA report on Wednesday, Jan. 12, should see production estimates in Australia and Argentina revised upwards.
Fertilizer prices remain very high and deliveries are also being hampered by the Covid crisis, which is causing logistical difficulties, analysts mark.
"Rapeseed is dealing at a record high, supported by a clear deficit in Europe and by increasingly reduced availability from Canada. Canola prices are also trading at record levels. This morning's MPOB(The Malaysian Palm Oil Board (MPOB)) report is seen as slightly bullish for palm. Stocks are down by 12.88 % from November and production is down by 11.26%," the report reads.
Chicago's prices rose again on Friday amid soaring energy prices and climate fears in South America. The week will be marked by the USDA report on Wednesday, which will include the publication of US winter wheat acreage figures. The trade is expecting an all wheat figure of 34.3 mln acres (13.9 mln ha). In Argentina, the Buenos Aires Exchange estimates the country's production at 21.8 mln t compared to 20 mln t posted last month by the USDA.
It is reported that corn is supported by the Buenos Aires Exchange's crop rating of 40% good to excellent compared to 58% last month. Plantings are 77% complete.
Soybeans are also benefiting from a downward revision of production estimates in Brazil by many analysts. Production could be around 134 mln t compared to 144 mln t seen in the last USDA report. The soybean crop rating on the Buenos Aires Exchange has been reduced from 56% of good to excellent to 48%.
Previously reported that wheat production in Argentina was revised upward by the Buenos Aires Grains Exchange for the fourth time.