Global feed market: timely rains in production areas, feed prices fall

 

On Friday, the Chicago Board of Trade (CBOT) September 2021 corn futures fell 47.
25 cents from a week ago to close at 530.
25 cents per bushel
.
Meiwan No.
2 yellow corn was quoted at 698 cents per po, down 23.
75 cents from a week ago
.
The corn futures for delivery in November 2021 on the EURONEXT exchange closed at about 195.
50 euros/ton, down 8.
75 euros from a week ago
.
The FOB spot price of Argentine corn in Shanghe was US$232/ton, an increase of US$1 from a week ago
.
The Dalian Commodity Exchange's September corn futures closed at 2,589 yuan/ton, down 35 yuan from a week ago
.

 

　　This week, international crude oil futures closed up for the fifth consecutive week, setting a new high since October 2018.
As investors bet that demand growth will exceed supply, the OPEC alliance continues to be cautious about increasing crude oil supply
.
On Friday, the New York Mercantile Exchange (NYMEX) West Texas Intermediate Crude Oil (WTI) August contract was quoted at 74.
05 yuan/barrel, up 3.
36% from a week ago, and the global benchmark Brent August crude oil futures closed.
US$76.
18/barrel, an increase of 3.
63% from a week ago
.

 

　　On Friday, the US dollar index closed at 91.
81 points, down 0.
6% from a week ago
.

 

　　The US Department of Agriculture's weekly crop progress report showed that as of June 13, the excellent and good rate of US corn was 65%, which was lower than 68% a week ago and also lower than the 66% expected by analysts
.
The excellent and good rate in the same period last year was 72%
.
However, the midwestern region of the United States ushered in a large-scale rainfall process this week, which means that the weekly crop report issued next week may show an improvement in corn yield
.

 

　　The U.
S.
Supreme Court decided on Friday that the U.
S.
Environmental Protection Agency (EPA) can largely waive the refinery’s obligation to blend renewable fuels
.
This means that the biofuel dispute between the oil industry and the agricultural industry has settled, and the oil company has won
.
In the United States, corn and soybeans are the main raw materials for the production of biofuels
.
This ruling means that the demand for corn and soybeans in the biofuel industry may decrease in the future, causing the soybean and corn markets to fall on Friday
.

 

　　The US Department of Agriculture's weekly export sales report shows that for the week ending June 17, 2021, US 2020/21 net corn sales were 216,300 tons, significantly higher than last week, but 33% lower than the four-week average
.
So far this year, the total US corn export sales have reached 69.
5321 million tons, an increase of 65.
7% over the same period last year
.

 

　　In Argentina, corn harvesting is in full swing
.
The weekly report of the Buenos Aires Grain Exchange stated that as of June 16, the progress of the 2020/21 corn harvest in Argentina was 42.
3%, which was higher than 37.
8% a week ago
.
The exchange estimates that corn production in 2020/21 will be 48 million tons, 3.
5 million tons less than the 51.
5 million tons in the previous year
.
Argentine corn exports in 2020/21 are expected to be 33 million tons, down from 36.
26 million tons in the previous year
.

 

　　In Brazil, due to severe dry weather, the second-season maize production forecast continues to be revised downwards
.
According to a survey conducted by Reuters this week, analysts predict that Brazil's total corn production in 2020/21 may be less than 94 million tons, a decrease of about 8.
5% from the previous year because of severe drought
.
Safras & Mercado initially estimated Brazil's second-season corn output to be 84 million tons, but recently lowered the forecast to less than 71 million tons
.
The poor corn harvest may result in an increase in corn imports and a decrease in exports
.
Celeres will lower Brazil's corn exports in 2021 to 22.
5 million tons, far below the 32 million tons previously expected
.
The company also predicts that Brazil's corn imports will reach 4 million tons in 2021
.

 

　　Dr.
Michael Cordogne, a South American agricultural expert, said that due to the record price of corn, pig and poultry farmers in southern Brazil have been losing profits in recent months, and some large farmers have begun to import from Paraguay and Argentina.
Corn to maintain the normal operation of the business
.
They also asked the government to allow the import of genetically modified corn from the United States
.
Brazil's National Committee for Biosafety Technology (CTNBio) has approved the import of genetically modified corn from the United States
.
However, analysts pointed out that whether Brazil imports US corn will ultimately depend on prices
.
Analysts said that if corn is currently imported from the United States and transported to the Chapeco area in western Santa Catarina, the cost per bag of corn is about 105.
49 reals (approximately US$9.
40 per bushel)
.
Corn imported from Argentina arrives at the same location, and the cost per bag is about 86.
24 reais (approximately US$7.
68 per bushel)
.
The current corn price in the Chapeco area is currently 81 reais per bag (approximately US$7.
21 per bushel)
.