Global feed market:seeding concerns, feed prices mostly rise
By: Date: 2021-04-20 Categories: Internationalfood Tags: ,
News from April 18th:In the week ending April 16, 2021, most of the global food market prices have risen. Because of the cold and dry weather in the Midwestern United States, which affected spring planting work, international crude oil futures rose strongly and the US dollar exchange rate fell. However, the outlook for South American corn production has improved, and US corn export sales have been sluggish, restricting price increases.

   On Friday, the Chicago Board of Trade (CBOT) July 2021 corn futures rose by about 11 cents from a week ago, to close at 573.75 cents per bushel. Meiwan No. 2 yellow corn was quoted at 649.5 cents per bushel, up 3.25 cents from a week ago. The corn futures for delivery in June 2021 on the EURONEXT exchange reported approximately 220.25 euros/ton, an increase of 3.25 euros from a week ago. The spot price of Argentine corn in Shanghe was US$248/ton, the same as last week, FOB price. The Dalian Commodity Exchange’s September corn futures closed at 2,690 yuan/ton, up 36 yuan from a week ago.
   This week, international crude oil futures rose by more than 6%, the largest weekly gain since early March, due to the strong economic growth of China and the United States, and the International Energy Agency and OPEC raised their expectations for global crude oil demand growth. The New York Mercantile Exchange (NYMEX) May West Texas Intermediate (WTI) crude oil futures closed at approximately $63.13 per barrel, up 6.4%from a week ago. The global benchmark Brent June crude oil futures closed at $66.77 per barrel, up 6.1%from a week ago.
   The rise in crude oil prices will help boost demand for biofuels, including ethanol, and constitute potential support for corn. Corn is the main raw material for ethanol production in the United States.
   On Friday, the US dollar index closed at 91.54 points, down 0.7%from a week ago.
  The corn planting work in the United States has begun, but weather forecasts indicate that cold and dry weather will appear in the Midwest in the coming week, which will affect farmers’ enthusiasm for planting. There are reports that due to the cold weather, many farmers have suspended planting, waiting for the temperature to rise. Analysts said the cold weather may slow down the planting work for 10 days. The US Department of Agriculture’s weekly crop progress report shows that as of April 11, 4%of corn planting in the United States has been completed, 2%a week ago, 3%in the same period last year, and a five-year average of 3%over the same period. Analysts had expected the planting progress to reach 5%to 8%.
   At the end of March, the United States Department of Agriculture estimated that the corn planted area in the United States this year was 91.144 million acres, the highest since 2016, but it was lower than the 93208 million acres predicted by analysts. Analysts pointed out that this means that the corn market still needs to rise further in order to attract farmers to a variety of corn. The corn planted area in the United States last year was 90.819 million acres.
   The US Department of Agriculture’s weekly export sales report shows that for the week ending April 8, 2021, the US 2020/21 net corn sales were 327,700 tons, which was 57%lower than last week and 81 lower than the four-week average.%. So far this year, the total US corn export sales have reached 66.81 million tons, an increase of 92.7%over the same period last year.
  In South America, AgRural, an agricultural consulting firm, stated that farmers in the central and southern regions who planted second-season corn after the ideal planting window had ended, had to prepare to deal with the loss of yield potential. At the end of March, AgRural lowered its second-season corn production forecast to 80.1 million tons. Considering the hotter and drier weather, AgRural may further lower its second-season corn production forecast this month. According to the consulting firm DATAGRO, as of April 9th, 75.6%of the first corn harvest in central and southern Brazil was completed, compared with 67.5%a week ago, 93%in the same period last year, and a five-year average of 82.2.%.
   The Buenos Aires Grain Exchange said that the forecast of corn production in Argentina has been raised from 45 million tons to 46 million tons because of higher yields. As the world’s third largest corn exporter, dry weather in Argentina’s agricultural production areas lasted until February, which was worrying at the time. However, the rains in March and April alleviated these concerns. The exchange said that the yield potential of late sowing corn Good, so this week the corn production data was revised up by 1 million tons.
   Preliminary data released by China Customs shows that China’s corn imports surged in the first quarter due to domestic supply shortages and corn prices. In the first quarter, China imported 6.727 million tons of corn, a year-on-year increase of 437%. In its monthly supply and demand report, the Ministry of Agriculture raised the forecast value of China’s corn imports for 2020/21 to 22 million tons, higher than the 10 million tons predicted a month ago because of strong demand and high domestic prices. The U.S. Department of Agriculture predicts that China’s corn imports will reach 24 million tons in 2020/21, which is the same as last month’s forecast.