US Wheat exports and crop conditions

[malleefarmer]

CBOT Sept wht up A$4.98/t & Dec up A$5.24. A delayed reaction to an IGC report last wk that cut prodn estimates for many countries. China may also import more US wht. Two ships were sold to China last wk. US export sales ahead of last yr. EU wht up against a higher euro.

[malleefarmer]

Will USDA downgrade as well

[malleefarmer]

FYI canola not your or mine

#Chinese #canola oil futures have rallied signifcantly, currently trading at US$1,236/T due to #supply concerns. In contrast to the drought conditions in NE #China, excessive rain and destructive #floods are hitting Sth China, damaging over 2 million hectares of summer crops.

[malleefarmer]

CBOT Sept wht up A$3.38/t & Dec up A$2.85. Some short covering after yesterday’s losses. US spr wht yields may fall short of forecasts. SovEcon reduced their Russian wht forecast by 400kt to 79.3 mill t. Argentine wht area & prodn estimates reduced but still a record 20 mill t.

[malleefarmer]

2010 to 2015 51 million tonne
2016 to 2020 76 million tonne

So yield improvement is Australia’s whole output or your in western Canada not sure. Mind boggling and they have shitloads more they can bring into production apparently

Russia will continue to drive world wheat pricing. At present the range of estimates remains quite wide - roughly 5mmt from lowest to highest.

Even at the low estimate the crop will be still be the second highest on record according to USDA data.

[errolanderson]

Black Sea wheat port export values continue to climb. Believe both Ukraine and Russian wheat moving between $210 to $215/MT FOB port as compared to $192 to $195/MT a year ago.

U.S. continues to lose large export tenders to the Black Sea. Egypt has been the largest buyer of U.S. wheat, but lost to Black Sea. But stiff fallout in the USD is what the U.S. export market needs badly.

The ruble is recently recovering against the dollar as is the Cdn dollar. Our loonie might trade in a 75 to 77 cent range into 4th quarter, unless the COVID crisis stateside can be contained (IMO).

Russian wheat yields ard down about 5 percent after being down 30 percent early in the growing season. Stocks in southern Russia are down as much as 50 per cent year over year according to Sovecon.

Bottomline . . . There is a lot of wheat globally, but the watch is on the Black Sea and the USD. This could trigger a post harvest recovery in wheat futures. Corn remains in a dowtrend due to massive 180/bu plus average yields, soybeans must receive ongoing China export news or risk fallout, but wheat might have seen the worst. Recovery possible post-harvest . . . .

[errolanderson]

Sovecon also reporting that spring wheat production in Siberia and the Urals now estimated @ 11 million MT, down 2 MMT from last year due to drought / high temps this summer.

[WiltonRanch]

2010 to 2015 51 million tonne
2016 to 2020 76 million tonne

So yield improvement is Australia’s whole output or your in western Canada not sure. Mind boggling and they have shitloads more they can bring into production apparently

Russia will continue to drive world wheat pricing. At present the range of estimates remains quite wide - roughly 5mmt from lowest to highest.

Even at the low estimate the crop will be still be the second highest on record according to USDA data.

I see on tweeter some of these tracts Russia intends to bring back into production again. From what I’ve read about said lands they’re not prime ground. They were farmed before but abandoned when the curtain fell. To me I get the sense soil is marginal, moisture limiting, and growing season is short. More suited to grazing than cropping. There is a real deficit of red meat in Russia and this would be better utilized as cow ground but any scheme to do so in the past had ended in failure. They aren’t stockmen.

[AlbertaFarmer5]

I see on tweeter some of these tracts Russia intends to bring back into production again. From what I’ve read about said lands they’re not prime ground. They were farmed before but abandoned when the curtain fell. To me I get the sense soil is marginal, moisture limiting, and growing season is short. More suited to grazing than cropping. There is a real deficit of red meat in Russia and this would be better utilized as cow ground but any scheme to do so in the past had ended in failure. They aren’t stockmen.

That is my impression from our travels. The prime farmland is already in production, with not much room left for expansion. Especially in the south.
Then there are large tracts of what looks to have been farmed at some time , but now doesn't even have livestock on it, and I think you are right, much of it is probably better suited to livestock. There is a big push to bring livestock back, government support, and great local prices, we met one entrepreneur who was importing cattle from Canada to start a herd( by plane).

I wonder if part of what is holding back expansion is security. Any grain farms, or intensive livestock farms have concrete and razor wire fences around, with armed guards and dogs at the gate. Kind of hard to protect livestock spread over thousands of acres 24/7?

[beaverdam]

Trade Stays Focused on Demand

https://www.barchart.com/story/futures/grains/11120/as-crops-improve-trade-stays-focused-on-demand https://www.barchart.com/story/futures/grains/11120/as-crops-improve-trade-stays-focused-on-demand

"early morning commentary for August 3, 2020.

Grain Marketswere mixed with corn and soybean futures higher on weather outlooks, while wheat futures slid lower on ample global supplies as the Brazilian wheat crop has the potential to be over 7 million tons this year (a record high)."

"USDA Weekly Crop Progress Reportwill be released this afternoon at 3 p.m. CDT. Trade is expecting corn crop conditions to gain 1% to 73% GTE (72% last week, 67% average). Soybean crop conditions expected to gain 1% to 73% GTE (72% last week, 67% average). Hard red spring wheat is expected to be stable at 70% GTE (70% GTE last week). Hard red spring wheat harvest seen between 9-11% complete (10% average)."

"U.S. Ag Departmenthas identified more than a dozen plant species ranging from morning glories to mustard in bags of unsolicited seeds arriving in the mailboxes of thousands of Americans, mostly postmarked from China. Another concern is what appears to be an unknown coating, possibly insecticide or fungicide on the seeds, said Robin Pruisner, state seed control official at the Department of Ag and Land Stewardship in Iowa."