Global feed market:the dollar exchange rate strengthens, feed prices fall
By: Date: 2021-03-29 Categories: Internationalfood Tags: ,
Foreign media news on March 28:In the week ending March 26, 2021, most of the global food market prices have fallen, mainly due to the severe situation of the new crown epidemic in Europe, and the market is worried about the recovery of the global economy, which has caused the bulk commodity market to fall across the board, thereby dragging it down. Agricultural products market. In addition, the Chinese buyers who successively bought US corn last week have disappeared. The US dollar exchange rate has strengthened. This year, the US corn sown area will increase significantly, which is also detrimental to the feed market.

   On Friday, the Chicago Board of Trade (CBOT) May 2021 corn futures fell approximately 5.25 cents from a week ago to close at 552.50 cents/po. Meiwan No. 2 yellow corn was quoted at 627.5 cents per cat, down 7.25 cents from a week ago. The corn futures for delivery in June 2021 on the EURONEXT exchange closed at about 213.50 euros/ton, down 1.75 euros from a week ago. The spot price of Argentine corn in Shanghe was US$235/ton, up by US$3 a week ago, FOB price. The Dalian Commodity Exchange’s May corn futures closed at 2,714 yuan/ton, an increase of 15 yuan from a week ago.
   This week, international crude oil futures staged the most turbulent roller coaster market in history. Crude oil plummeted by 6%on Tuesday, and surged by 6%on Wednesday; it fell by 4%on Thursday and rose by 4%on Friday. The severe epidemic situation in Europe has brought negative pressure to the market, and the stranded freighter caused the blockage of the Suez Canal, making the market worried about supply disruption. On Friday, the New York Mercantile Exchange (NYMEX) May 2021 WTI light crude oil contract closed at US$60.97/barrel, down 0.7%from a week ago. The global benchmark Brent June crude oil futures closed at US$64.57/barrel. It is up 0.1%from a week ago.
   On Friday, the ICE exchange dollar index closed at 92.735 points, up 0.88%from a week ago.
   Chinese buying disappeared this week
   The Chinese purchases that caused the corn price to rise last week disappeared this week. This week, the USDA did not announce the sales to China in its daily export sales report. This was also the last four consecutive trading days in China last week. The cumulative purchase of nearly 3.9 million tons of corn is in sharp contrast.
   The US Department of Agriculture’s weekly export sales report shows that for the week ending March 18, the US 2020/21 net corn sales were 4,481,900 tons, which was significantly higher than last week and the four-week average. So far this year, the total US corn export sales have reached 65 million tons, an increase of 110.8%year-on-year.
  Second-season corn planting in South America has been delayed, and yield prospects are worrying
  Safras said that as of March 19, 86.2%of the second-season corn planting in central and southern Brazil had been planted, which was down from 90.3%in the same period last year and was about 10%behind the historical average for the same period. Heavy rains this year delayed the soybean harvest in Brazil, which in turn affected the planting of second-season corn in the main producing areas, causing concerns about domestic supply shortages, especially for meat producers.
  Safras predicts this week that Brazil’s corn production in 2020/21 will reach a record 112.8 million tons, which is lower than the previous forecast of 113.5 million tons, but still far higher than the previous year’s 106.8 million tons. The average yield of corn in Brazil in 2020/21 is expected to be 5,436 kg per hectare, which is lower than the forecast of 5,617 kg in January and 5,468 kg in the previous year. The main reason for the lower output data is the delay in planting of the second season corn, forcing farmers to plant corn after the ideal planting window is closed. Safras predicts that the total maize sown area in Brazil will reach 20.752 million hectares, an increase of 6.2%from the 19.537 million hectares of the previous year and also higher than the January forecast of 2019.9 million hectares.
   The Buenos Aires Grain Exchange stated that rainfall in most agricultural areas of Argentina in the past week has improved soil moisture, which is beneficial to the corn crops that are sown later in the grain filling period. As of March 17, Argentina’s 2020/21 corn harvest progress was 5.9%, up from 3.4%a week ago. The exchange estimates that corn production in 2020/21 will be 45 million tons, a decrease of 6.5 million tons from 51.5 million tons in the previous year.
  U.S. corn spring planting area becomes the focus of attention
  The spring broadcast work in the United States is about to begin in full swing. According to a survey conducted by the American Farm Futures magazine in March, the sown area of ​​corn in the United States in 2021 will increase by 3.1%over the previous year to 93.6 million acres, which will be the highest planting scale since 2016 (at the time it was 94 million acres). It will be the fourth largest planting scale since 1945. According to the trend of 179.5 bu per acre, US corn production in 2021 is expected to reach a record 15.413 billion bu.
  Analysis agency IHS Markit predicts that the corn planted area in the United States will reach 94.294 million acres in 2021, slightly higher than the 94.244 million acres predicted in January, an increase of 3.8%over the previous year. If the average yield of 180 bu/acre is used, the US corn production this year may reach 15.587 billion bu.
   The US Department of Agriculture will release a planting intention report and a quarterly inventory report on March 31.
   The global corn production in 2021/22 may reach a record 1.193 billion tons
   The International Grain Council (IGC) this month predicts that the global grain production in the 2021/22 season will reach a record 2.287 billion tons, but due to consumption growth, the increased supply will be fully digested.
  Global corn production is expected to reach 1.193 billion tons, higher than the 1.139 billion tons in 2020/21, of which US production will increase from 360.3 million tons in the previous year to 384 million tons.
  Global corn ending stocks are expected to fall to 258 million tons, lower than the 268 million tons in 2020/21.