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    Home > Food News > Food Articles > Global feed market: weather worries, strong demand outlook, rising feed prices

    Global feed market: weather worries, strong demand outlook, rising feed prices

    • Last Update: 2021-05-07
    • Source: Internet
    • Author: User
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       News from April 25th: In the week ending April 23, 2021, the global food market foodmate.
    net/tag_2496.
    html" class="zdbq" title="Price related food information" target="_blank">prices rose strongly.
    Among them, the Chicago Board of Trade (CBOT)
    foodmate.
    net/tag_2319.
    html" class="zdbq" title="Corn related food information" target="_blank">corn futures price rose by more than 10%, setting an 8-year high, mainly due to foodmate.
    net/tag_2463.
    html" class="zdbq" title="U.
    S.
    related food information" target="_blank">the Midwestern foodmate.
    net/tag_2463.
    html" class="zdbq" title="U.
    S.
    related food information" target="_blank">United States .
    A cold wave occurred in the region, affecting corn planting and crop emergence; the
    continued dry weather
    foodmate.
    net/tag_3725.
    html" class="zdbq" title="Brazil-related food information" target="_blank">in the second-season corn production area in foodmate.
    net/tag_3725.
    html" class="zdbq" title="Brazil-related food information" target="_blank">Brazil and impaired yield potential caused corn prices to suspend risk premiums; the depreciation of the US dollar and re-inflation transactions attracted speculative funds to enter the
    foodmate.
    net/tag_1357.
    html" class="zdbq" title="Agricultural related food information" target="_blank">agricultural product market.
    Volatility is unusually active.
     
      On Friday, the Chicago Board of Trade (CBOT) July 2021 corn futures rose by about 58.
    75 cents from a week ago, to close at 632.
    50 cents/po.
    Meiwan No.
    2 yellow corn was quoted at 720.
    5 cents per cat, an increase of 71 cents from a week ago.
    The corn futures for delivery in June 2021 on the EURONEXT exchange reported about 230.
    25 euros/ton, up 10 euros from a week ago.
    The spot price of Argentine corn in Shanghe was US$267/ton, an increase of US$19 from a week ago, FOB price.
    The September corn futures on the Dalian Commodity Exchange closed at 2,760 yuan/ton, an increase of 70 yuan from a week ago.
     
      The decline in international crude oil futures this week was mainly due to the continued deterioration of the new crown epidemic in India, which caused concern about the slowdown in energy demand recovery.
    In addition, the increase in the supply of crude oil from Iran and the OPEC alliance also put pressure on the market.
    The New York Mercantile Exchange (NYMEX) West Texas Intermediate Crude Oil (WTI) June contract closed at $62.
    14 per barrel, down 1.
    66% from a week ago.
    The global benchmark Brent June crude oil futures closed at approximately $66.
    11 per barrel, down 0.
    99% from a week ago.
     
      On Friday, the US dollar index closed at 90.
    83 points, down 0.
    8% from a week ago.
     
      The weather in Brazil is dry, and the prospects for the second-season corn production become the focus
     
      The unfavorable weather in Brazil's second-season corn-producing areas has also added risk and premium to corn prices.
    This year, the second-season corn producing areas in Brazil entered the dry season ahead of schedule, causing the market to worry about the growth of the second-season corn.
    The Brazilian National Institute of Meteorology (Inmet) released weather forecasts for the next 15 days, showing that dry air in parts of central and southern Brazil (the main second-season corn producing area) will increase in the next few days, thereby limiting the chance of rain in the entire region.
    Due to delays in soybean harvest, farmers have to plant corn outside the ideal planting window, and scarce rainfall will damage the outlook for corn production.
     
      Due to planting delays and continued dry weather, this week, the Rural Economic Research Institute of Parana State (DERAL), Brazil’s second largest corn-producing region, lowered its 2020/21 second-season corn production forecast to 13.
    4 million tons, lower than the previous forecast of 1400.
    10,000 tons, and indicated that the production forecast data may be further reduced in the future.
     
      Consultancy IHS Markit forecast this week that Brazil’s corn production in 2020/21 will be 104 million tons, which is 4.
    6 million tons lower than the previous forecast.
    IHS Markit currently forecasts Brazil’s second-season corn output at 79.
    45 million tons, which is lower than the 85 million tons forecast in February.
     
      Rabobank lowered its forecast for Brazil’s corn production in 2020/21 to 105 million tons, 2 million tons lower than the previous forecast.
    The reason for the lower output is that the planting schedule has been delayed and the rainfall in the second-season corn-producing areas is unstable.
     
      Fitch Ratings slightly lowered Brazil’s 2020/21 maize production forecast to 104 million tons, because drought has already harmed the yield of the first-season maize, and now it is also beginning to pose a threat to the new second-season maize.
     
      South American expert Dr.
    Michael Cordone also lowered Brazil’s corn production forecast by 2 million tons to 103 million tons.
    He pointed out that the planting time of the second season corn in many areas was one month or more later than normal, and the late planting corn is currently facing the situation of the early end of the summer rainy season.
     
      Rumors that China has begun to purchase U.
    S.
    new season corn
     
      U.
    S.
    market participants said this week that China is rumored to be looking for new season US corn.
    Benson Quinn Commodity Company said that China is now rumored to be looking for new corn in the United States.
    Steve Fried, vice president of ADM Investment Services, also mentioned that China is rumored to be looking for 1 to 2.
    5 million tons of new US corn.
     
      A Counselor's Report issued overnight by the U.
    S.
    Agricultural Counselor stated that China will import 28 million tons of corn this year, which is 4 million tons higher than the official forecast of the U.
    S.
    Department of Agriculture in April.
     
      The Chinese government issued guidelines this week recommending reducing the use of corn and soybean meal in pig and poultry feed, a measure that could reshape China’s grain imports.
    The price of corn in China has soared by more than one-third in the past year, so China has been using cheaper feeds to replace corn, especially wheat.
    According to the Ministry of Agriculture of China, rice, cassava, rice bran, barley and sorghum are also suitable substitutes for corn, while rapeseed meal, cottonseed meal, peanut meal, sunflower meal, corn distillers' grains, palm meal, linseed meal, sesame seed meal and corn processing By-products are also a good choice to replace soybean meal.
     
      The US Department of Agriculture’s weekly export sales report shows that for the week ending April 15, US 2020/21 net corn sales were 390,000 tons, 18% higher than last week, but 75% lower than the four-week average.
    Sales to China cancelled 124,000 tons.
    The total US corn export sales so far this year is 67.
    2 million tons, an increase of 90.
    2% year-on-year.
     
      Weather may slow down US corn planting
     
      The US Department of Agriculture's weekly crop progress report shows that as of April 18, the US corn planting progress was 8%, higher than 4% a week ago, 6% in the same period last year, and the five-year average for the same period was 8%.
    However, the data is lower than the 9% predicted by analysts.
    In addition, the U.
    S.
    corn emergence rate was 2%, 1% in the same period last year, and the historical average was 1%.
    This week there was a cold wave in the Midwest of the United States, and snow fell in some areas, making farmers unwilling to work in the fields and slowing down the progress of spring planting.
    In addition, the temperature below the freezing point may also affect the emergence of just sown crops, threatening the yield potential.
     
      Brazil suspends import tariffs on corn before the end of the year
     
      Brazil’s Ministry of Agriculture said on Monday that Brazil suspends import tariffs on corn before the end of the year because recent increases in international commodity prices have led to increased domestic inflationary pressures in Brazil.
    The Brazilian Animal Protein Association (ABPA) stated that the United States and Ukraine can supply corn to Brazil after the removal of corn import tariffs.
    ABPA also requires the government to authorize the import of unapproved genetically modified corn from the United States in an emergency.
    This authorization will only apply to imported corn for the production of feed.
     
      Argentine corn production forecast increased
     
      The Rosario Grain Exchange predicts this week that the output of Argentine corn in 2020/21 will reach 50 million tons, an increase of 1.
    5 million tons from the 48.
    5 million tons previously forecast.
    Because of the increased planting area in Cordoba province, the yield is good.
    The exchange said that the production of Cordoba will hit a record high.
     
      Earlier, the Buenos Aires Grain Exchange also raised the forecast value of Argentine corn production for 2020/21 to 46 million tons, higher than the previous forecast of 45 million tons, because the yield was higher than expected.
     
      However, Fitch Ratings slightly lowered the 2020/21 Argentine corn production forecast to 48.
    25 million tons, because the dry weather during the planting period caused soil conditions to deteriorate.
    However, as of the end of April, the weather seems to be gradually stabilizing, and production data is not expected to be adjusted further.
    foodmate.
    net/tag_2496.
    html" class="zdbq" title="Price related food information" target="_blank">Price foodmate.
    net/tag_2319.
    html" class="zdbq" title="Corn related food information" target="_blank">Corn foodmate.
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    html" class="zdbq" title="U.
    S.
    related food information" target="_blank">U.
    S.
    foodmate.
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    net/tag_1357.
    html" class="zdbq" title="Agricultural related food information" target="_blank">Agricultural Products
     
      On Friday, the Chicago Board of Trade (CBOT) July 2021 corn futures rose by about 58.
    75 cents from a week ago, to close at 632.
    50 cents/po.
    Meiwan No.
    2 yellow corn was quoted at 720.
    5 cents per cat, an increase of 71 cents from a week ago.
    The corn futures for delivery in June 2021 on the EURONEXT exchange reported about 230.
    25 euros/ton, up 10 euros from a week ago.
    The spot price of Argentine corn in Shanghe was US$267/ton, an increase of US$19 from a week ago, FOB price.
    The September corn futures on the Dalian Commodity Exchange closed at 2,760 yuan/ton, an increase of 70 yuan from a week ago.
     
      The decline in international crude oil futures this week was mainly due to the continued deterioration of the new crown epidemic in India, which caused concern about the slowdown in energy demand recovery.
    In addition, the increase in the supply of crude oil from Iran and the OPEC alliance also put pressure on the market.
    The New York Mercantile Exchange (NYMEX) West Texas Intermediate Crude Oil (WTI) June contract closed at $62.
    14 per barrel, down 1.
    66% from a week ago.
    The global benchmark Brent June crude oil futures closed at approximately $66.
    11 per barrel, down 0.
    99% from a week ago.
     
      On Friday, the US dollar index closed at 90.
    83 points, down 0.
    8% from a week ago.
     
      The weather in Brazil is dry, and the prospects for the second-season corn production become the focus
     
      The unfavorable weather in Brazil's second-season corn-producing areas has also added risk and premium to corn prices.
    This year, the second-season corn producing areas in Brazil entered the dry season ahead of schedule, causing the market to worry about the growth of the second-season corn.
    The Brazilian National Institute of Meteorology (Inmet) released weather forecasts for the next 15 days, showing that dry air in parts of central and southern Brazil (the main second-season corn producing area) will increase in the next few days, thereby limiting the chance of rain in the entire region.
    Due to delays in soybean harvest, farmers have to plant corn outside the ideal planting window, and scarce rainfall will damage the outlook for corn production.
     
      Due to planting delays and continued dry weather, this week, the Rural Economic Research Institute of Parana State (DERAL), Brazil’s second largest corn-producing region, lowered its 2020/21 second-season corn production forecast to 13.
    4 million tons, lower than the previous forecast of 1400.
    10,000 tons, and indicated that the production forecast data may be further reduced in the future.
     
      Consultancy IHS Markit forecast this week that Brazil’s corn production in 2020/21 will be 104 million tons, which is 4.
    6 million tons lower than the previous forecast.
    IHS Markit currently forecasts Brazil’s second-season corn output at 79.
    45 million tons, which is lower than the 85 million tons forecast in February.
     
      2020/211.
    05,200。,。
     
      2020/211.
    04,,。
     
      ·200,1.
    03。,,。
     
      
     
      ,。?,。ADM?,100250。
     
      ,2800,4400。
     
      ,,。,,。,、、、,、、、、、、、。
     
      ,415,2020/2139,18%,75%,12.
    4。6720,90.
    2%。
     
      
     
      The US Department of Agriculture's weekly crop progress report shows that as of April 18, the US corn planting progress was 8%, higher than 4% a week ago, 6% in the same period last year, and the five-year average for the same period was 8%.
    However, the data is lower than the 9% predicted by analysts.
    In addition, the U.
    S.
    corn emergence rate was 2%, 1% in the same period last year, and the historical average was 1%.
    This week there was a cold wave in the Midwest of the United States, and snow fell in some areas, making farmers unwilling to work in the fields and slowing down the progress of spring planting.
    In addition, the temperature below the freezing point may also affect the emergence of just sown crops, threatening the yield potential.
     
      Brazil suspends import tariffs on corn before the end of the year
     
      Brazil’s Ministry of Agriculture said on Monday that Brazil suspends import tariffs on corn before the end of the year because recent increases in international commodity prices have led to increased domestic inflationary pressures in Brazil.
    The Brazilian Animal Protein Association (ABPA) stated that the United States and Ukraine can supply corn to Brazil after the removal of corn import tariffs.
    ABPA also requires the government to authorize the import of unapproved genetically modified corn from the United States in an emergency.
    This authorization will only apply to imported corn for the production of feed.
     
      Argentine corn production forecast increased
     
      The Rosario Grain Exchange predicts this week that the output of Argentine corn in 2020/21 will reach 50 million tons, an increase of 1.
    5 million tons from the 48.
    5 million tons previously forecast.
    Because of the increased planting area in Cordoba province, the yield is good.
    The exchange said that the production of Cordoba will hit a record high.
     
      Earlier, the Buenos Aires Grain Exchange also raised the forecast value of Argentine corn production for 2020/21 to 46 million tons, higher than the previous forecast of 45 million tons, because the yield was higher than expected.
     
      However, Fitch Ratings slightly lowered the 2020/21 Argentine corn production forecast to 48.
    25 million tons, because the dry weather during the planting period caused soil conditions to deteriorate.
    However, as of the end of April, the weather seems to be gradually stabilizing, and production data is not expected to be adjusted further.
    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.
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