News World news: Futures for palm oil have shown a third consecutive weekly increase. Malaysian palm oil futures concluded Friday’s trading session with moderate growth, marking the third consecutive weekly increase. The palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange rose by 12 ringgit, or 0.3%, to 3,877 ringgit (USD 857.17) per metric ton. Over the week, palm oil contracts increased by 1.1%, marking the third consecutive weekly gain and the longest winning streak since February. “Positive sentiment from export demand has fueled buying interest, although gains are capped by the resurgence of the strengthening local currency,” said Sathia Varqa, co-founder of Singapore-based company Palm Oil Analytics, as reported by Reuters. Palm oil imports to India surged by 56% to a three-month high in June as buyers took advantage of lower prices to increase purchases, according to a leading trade body. Malaysia maintained the export duty on crude palm oil at 8% for August and increased the reference price, as stated in a circular posted on the Malaysian Palm Oil Board’s website on Friday. Meanwhile, Indonesia, the largest producer, plans to raise the reference price of crude palm oil to USD 791.02 per metric ton for the period of July 16-31, according to a senior official from the Ministry of Economy. This move would make Indonesian palm oil less competitive compared to Malaysian palm oil. The most active Dalian contract for soybean oil strengthened by 0.8%, while the palm oil contract rose by 0.2%. Soybean oil prices on the Chicago Mercantile Exchange increased by 0.8%. Palm oil is influenced by price fluctuations in other vegetable oils as they compete for market share in the global vegetable oil market. The Malaysian ringgit, the trading currency of palm oil, rose by 1.40% against the dollar, reaching its highest level since May 18. A stronger ringgit makes palm oil less attractive to foreign currency holders. (1 USD = 4.5230 MYR)

News World news: China increased its soybean imports by 24.5% in June. According to Reuters, citing official customs data, China imported around 10.27 million metric tons of soybeans in June, which is a 24.5% increase compared to the same month last year. Experts attribute the increase in shipments to China to the growth in purchases of cheaper raw materials from Brazil. “Imports in June were lower than the record 12.02 million metric tons in May when there was a sharp increase in the number of detained soybean cargoes at customs. However, shipment volumes remain relatively high and in line with market expectations,” the report stated. Darin Friedrichs, co-founder of Shanghai-based Sitonia Consulting, commented that an additional 10-11 million metric tons of oilseeds are expected to be imported this month. However, demand may decrease in the second half of the year if China’s pig population starts to decline. “In that case, less soybean meal will be needed, which means less soybeans for processing,” he added. Overall, in the first half of the year, China increased its soybean purchases by 13.6% compared to January-June 2022, reaching a total of 52.58 million metric tons.

News World news: Freight rates for grain transportation from Danube ports continue to rise. According to Atria Brokers, as of June 13th, freight rates for transporting batches of wheat and corn with a volume of 6,000 tons by coasters from the ports of Reni and Izmail were as follows: To Spain: $55/ton To the eastern coast of Italy: $48/ton To the eastern Mediterranean (Lebanon, Egypt, Cyprus): $40/ton To the eastern coast of Greece: $37/ton During the week, the freight costs for these routes increased by $2/ton due to increased demand. Additionally, rates for transporting grain to Crete increased to $38/ton, and to Israel to $45/ton, both increasing by $1/ton. It should be noted that freight rates for barley are approximately $2/ton higher than those for corn. Freight rates for transporting wheat and corn by coasters from Danube ports to Marmara increased from $30/ton to $32/ton during the week, but there is still almost no demand in this direction. Freight rates for transporting wheat and corn by barges from Danube ports to Constanța increased by €2/ton to reach €30/ton, while rates for rapeseed remained at €35/ton. Freight rates for transporting non-granulated meal by coasters in batches of 6,000 tons to Marmara increased by $3/ton to $45/ton, while rates for granulated meal remained at $40/ton. Freight rates for transporting rapeseed meal by coasters to Spain increased by $10/ton to reach $75/ton during the week.

News World news: Strategie Grains has once again lowered its forecasts for grain crop yields in the EU. Experts from Strategie Grains have revised down their production forecasts for wheat, barley, and maize in the EU for the 2023/24 marketing year due to challenging weather conditions. Compared to previous estimates, the production forecasts have been lowered as follows: Soft wheat: down by 2.5 million tonnes to 126.2 million tonnes (+1% compared to 2022/23 MY) Barley: down by 0.8 million tonnes to 47.1 million tonnes (-8% compared to 2022/23 MY) Maize: down by 0.4 million tonnes to 60.8 million tonnes (+17% compared to 2022/23 MY) Harvesting of wheat and barley is actively taking place in Europe, and preliminary data indicates “catastrophically” low yields in Spain and very low yields in Southeastern Europe, which experts attribute in part to excessive spring rainfall. Spring barley has suffered from drought, especially in northern Europe, while the maize crop may decrease if strong rains do not occur in July. Yield prospects are slightly better in France and Central Europe. At the same time, Strategie Grains has lowered its forecast for EU soft wheat exports in the 2023/24 MY from 31.4 to 30.1 million tonnes, and revised the export forecast for the 2022/23 MY from 31.8 to 30.5 million tonnes. Export prospects are being hampered by non-competitive wheat prices in France and uncertainty regarding shipments to China, which may reduce its imports of feed wheat due to the deterioration of its own harvest quality caused by heavy rains.

News World news: Speculative increase in oil prices supports the quotations for rapeseed and soybeans. Quotations for soybeans and rapeseed, which declined after the USDA report, started to recover yesterday against the backdrop of speculative oil price growth to a 2.5-month high. September futures for Brent crude oil on the ICE London exchange rose by 6.2% to $81.3 per barrel (+9.8% for the month), and August futures for WTI crude oil on the NYMEX New York exchange increased by 6.9% to $76.8 per barrel (+12%) due to improved macroeconomic indicators in the US, reduced recession risk, and halting of oil production in certain Libyan fields. The market was supported by an increase in China’s oil imports in June by 4.6% to a 3-year high of 12.72 million barrels per day. However, oil demand in China is gradually decreasing due to a slowing economy. The national corporation CNPC (the largest oil and gas producer in the country) has lowered its crude oil demand forecast for China in 2023 from 756 to 740 million tons compared to the March estimates. Crude oil inventories in the country reached a 2-year high of 966 million barrels in May, surpassing the 5-year average of 858 million barrels by 12.5%. In June, China reduced its exports of goods by 12.4% compared to June 2022 (against expectations of 10%), marking the largest drop in the last 3 years, and imports decreased by 6.8% (against expectations of 4.1%). This indicates a sharp slowdown in the country’s economy. According to Vortexa, crude oil inventories on tankers that have been idle for at least a week increased by 5.5% in a week and amounted to 112.07 million barrels as of July 7, although the average storage on tankers is 85-90 million barrels of oil. On the Chicago exchange, soybean quotations dropped by 2-2.5% based on the USDA report, but yesterday August futures increased by 2.8% to $545.6 per ton, and November futures rose by 3.1% to $503.3 per ton (+2.2% for the week and 10.5% for the month). Traders are conducting speculative purchases, understanding that the soybean harvest in the US will decrease, and prices for the new harvest will reach the level of prices for the old harvest. On the Winnipeg exchange, November futures for canola increased by 2.1% to 814 CAD per ton or $621 per ton (+7% for the week, +21% for the month). On the Paris exchange, August futures for rapeseed rose by 2.4% to 473.5 EUR per ton or $532 per ton (+5.7% for the week, +5.8% for the month). In the July report, USDA experts increased the forecast for global rapeseed production in 2023/24 MY by 0.21 to 87.42 million tons (88.34 million tons last year), including 4 million tons for Ukraine, compensating for the decrease in EU crop by 0.8 to 20.2 million tons due to drought in France and Germany. On the physical market, the discount relative to November quotations on MATIF increased from -40 EUR/ton to -60 EUR/ton amid increased offers from Ukraine and Eastern Europe. Forecasts for rapeseed production in the EU are decreasing, but prospects for soybean and sunflower crops remain favorable. In Ukraine, purchase prices for rapeseed increased from $340-350 per ton to $355-360 per ton or 14,000-14,600 UAH per ton with delivery to the Danube ports due to higher global prices and harvesting delays caused by rainfall. Demand for rapeseed from the EU is very low. Buyers offer 425-430 EUR/ton on DAP Germany only for deliveries in October-November. An increase in rapeseed supply amid oil price decline can sharply reverse prices downwards, especially in the case of signals of China’s economic slowdown.

News World news: On July 12, 2023, Malaysian futures for palm oil increased by 1%. On Wednesday, Malaysian futures for palm oil rose by 1%, compensating for losses due to sustained demand and the market digesting lower-than-expected end-of-June inventories. The benchmark contract for palm oil with delivery in September on the Bursa Malaysia Derivatives Exchange increased by 39 ringgits, or 1%, to 3928 ringgits ($845.09) per metric ton. According to Anilkumar Bagani, head of research at Mumbai-based vegetable oils broker Sunvin Group, the market is still taking cues from the Malaysian Palm Oil Board’s (MPOB) report, but sustaining the growth would require demand for fresh supplies, Reuters reported. End-of-June inventories rose by 1.9% to 1.72 million metric tons compared to the previous month, but the increase was much lower than anticipated, as reported by the MPOB on Monday. Exports from Malaysia during the period from July 1 to 10 increased by 18.7-26.1%, according to surveyor companies Amspec Agri and Intertek Testing Services, driven by higher demand from the major consumer, China. Demand is expected to remain strong in the third and fourth quarters of the year, said Marcello Cultrera, director at Singapore-based commodity consultancy Apricus 8 Pte Ltd, Reuters reported. The most active Dalian contract for soybean oil fell by 0.4%, while the palm oil contract dropped by 0.9%. Soybean oil prices on the Chicago Board of Trade rose by 1.8%. Palm oil prices are influenced by fluctuations in prices of related oils as they compete for market share in the global vegetable oils market. (1 dollar = 4.6480 ringgits)

News Agricultural news: Ukraine has exported approximately 900,000 tons of grain. As of July 12, in the 2023/2024 marketing year, Ukraine has exported 894,000 tons of grains and legumes, which is 296,000 tons more compared to the same date last year, according to the website of the Ministry of Agrarian Policy and Food of Ukraine. Specifically, the export of Ukrainian wheat amounts to 283,000 tons, which is 164,000 tons or 2.3 times more than the previous year. For the first time since the beginning of the new marketing year, Ukraine has exported 0.1 thousand tons of rye. Ukrainian farmers have also exported 81,000 tons of barley as of July 12. The export of Ukrainian corn reached 529,000 tons, which is 94,000 tons more than the previous year. Additionally, 3.5 thousand tons of flour have been exported, which is equivalent to 4.7 thousand tons of grain, doubling the amount compared to the previous year. It should be noted that as of July 7, 497,000 tons of grains and legumes have been exported in the 2023/2024 marketing year.

News Agricultural news: Ukraine maintains its leadership in the Chinese market for sunflower meal. In the 2022/2023 season, which will end on September 30, China is projected to import 2.7 million tons of sunflower meal, a 39% increase compared to the previous season, according to the Foreign Agricultural Service of the United States Department of Agriculture (FAS USDA). Sunflower meal has become more attractive to Chinese consumers after the sharp increase in soybean meal prices in the second half of the current season. During the first eight months of the season, imports of sunflower meal reached 2.2 million tons, with the majority (74%) supplied by Ukraine. While Ukrainian sunflower meal exports have remained stable this season, imports from Bulgaria and Russia have significantly increased. From June 2022 to May 2023, China imported 282.7 thousand tons of sunflower and rapeseed meal from Russia (compared to 73.9 thousand tons during the same period the previous year). Imports of sunflower meal from Bulgaria also increased to 599.0 thousand tons (compared to 320.7 thousand tons). The total import of meal to China during the period amounted to 4,771.2 thousand tons (compared to 4,516.7 thousand tons). According to FAS USDA, in the 2023/2024 season, the import of sunflower meal is expected to decrease to 2.5 million tons due to lower prices of soybean meal.

News World news: Malaysian palm oil futures reversed their previous growth and closed lower on Tuesday. Malaysian palm oil futures reversed their previous growth and closed lower on Tuesday as traders weighed expectations of increased production against improved export demand. The contract for palm oil delivery in September on the Malaysian Derivatives Exchange Bursa fell by 32 ringgit, or 0.82%, to 3,888 ringgit (USD 835.23) per metric ton. Exports from Malaysia from July 1 to July 10 increased by 18.7-26.1%, according to data from surveying companies Amspec Agri and Intertek Testing Services. According to the Southern Peninsula Palm Oil Producers Association, production from July 1 to July 10 increased by 5.93% compared to the same period in June, according to traders and analysts. “We expect stock levels to remain at the same level or slightly increase as July’s production is expected to grow only by high single digits, with a slight increase in monthly exports,” said UOB KayHian brokerage firm, as reported by Reuters. Crude palm oil prices are expected to rise due to a slower-than-expected peak production season and current weather risks for palm, soybean, and other vegetable oils. Palm oil stocks in Malaysia increased by 1.9% to 1.72 million metric tons at the end of June compared to the previous month, which is much lower than expected, according to data from the Malaysian Palm Oil Council. The condition of soybean crops in the US improved over the past week after rainfall in the drought-hit areas of the US, although they remained the worst in over a decade, while the condition of spring wheat deteriorated, according to US government data on Monday. Soybean oil prices on the Chicago Mercantile Exchange fell by 0.7%. The most active Dalian contract for soybean oil rose by 0.4%, while the contract for palm oil increased by 0.8%. Palm oil is influenced by price fluctuations in related oils as they compete for market share in the global vegetable oil market. (1 US dollar = 4.6550 ringgit)

News World news: Futures for soybeans in the US rose by approximately 2% on Monday. Futures on soybeans in the United States rose by approximately 2% on Monday, bouncing back from a one-week low set on Friday as traders took positions ahead of the monthly crop reports expected to be released mid-week by the US Department of Agriculture. According to traders, supplies of oilseeds from the US have declined. The rise in global vegetable oil markets led to an increase in soybean oil futures, further supporting the soy complex. Futures on Malaysian palm oil rose on favorable export and inventory data. Corn futures followed a steady trend with soybeans, while wheat futures closed in the negative after a volatile session. November soybeans on the Chicago Board of Trade (CBOT) increased by 27-3/4 cents to $13.45-1/2 per bushel, while benchmark soybeans in December rose by 2.48 cents per pound, or 4.25%, to 60.81 cents per pound. CBOT December corn rose by 5 cents to $4.99-1/2 per bushel, while September wheat fell by 3-1/4 cents to $6.46-1/4 per bushel. Traders are awaiting the US Department of Agriculture’s demand and supply reports on July 12, which are expected to see the government lower its forecast for US soybean production in 2023 following a sharp reduction in soybean acreage estimates last month. Most analysts also expect the USDA to lower its soybean yield forecast in the US. Analysts anticipate the USDA to lower its corn yield estimate in the US, but the increase in corn planting area estimates released on June 30 should mitigate changes in yellow grain production. Ahead of the weekly USDA crop condition report, which was scheduled to be published later on Monday, analysts surveyed by Reuters expected, on average, the government to rate 53% of the US corn crop in good to excellent condition, a 2-percentage-point increase from the previous week. As for soybeans, analysts on average forecasted the USDA to rate 52% of the oilseed crop in good to excellent condition, also up 2 points from the previous week, following favorable rainfall in the Midwest growing belt that alleviated concerns over dry conditions impacting both crops. CBOT wheat futures fell despite uncertainty surrounding the Black Sea export deal. The Kremlin stated on Monday that there was no new information regarding the deal. Strong exports of Russian wheat eased the market’s concerns over a potential closure of the export corridor from Ukraine.