After starting 2022 off on the positive side, US farm markets were lower the second week of January.
Corn prices closed out the week with March dropping 1.73%, but only thanks Friday’s session which helped to limit those losses.
Soybeans fell 2.87% since last Friday on the late week weakness.
Soybean meal was the weight on the entire market, down 4.56%.
Soy oil slipped as week albeit the loss of 0.54% were minimal.
The wheat complex, posted sharp losses for the week, with MPLS on the first line, down 4.88%.
KC wheat slipped by 3.87%.
CBOT was down 2.24% on the week.
Particularly, CBOT corn futures were down 10.5 cents to $5.96/bu.
CBOT soybean futures were down $0.405 at $13.70/bu.
Soymeal slumped by $19,4/smt at $405.60 smt.
Soy oil fell $0.32 cents at $58.46.
CBOT soft red winter (SRW) futures fell 17 cents to close at $7.42/bu.
KCBT hard red winter (HRW) futures shedded 30 cents to end at $7.45/bu.
MGE hard red spring (HRS) futures tumbled 45 cents to close at $8.78/bu.
Meantime, as of January 13, 2022, US corn 3YC (Gulf) was at $277/mt (down $3/mt from last week).
US soybean 2Y (Gulf) quoted at $554/mt (up $2/mt from last week).
US wheat No 2 Hard Red Winter (HRW) was valued at $362/mt (up $1/mt from last week).
US wheat No 2 Soft Red Winter (SRW) was at $326/mt (unchanged from last week).
ND 14.0 (Northen Durum with 14% protein) was valued at $686 per tonne (up $6 from prior week).
On the other hand, USDA saw corn oil prices between 61.75 and 63.69 cents/lb regionally this week.
Average prices last week ranged 57.5 to 59 cents regionally.
DDGS prices were steady to weaker compared to last week, as USDA saw the week’s average NOLA FOB at $248.50/ton and the PNW at $287/ton.
The weekly average ethanol cash prices came were significantly lower.
Indeed, USDA had SoDak ethanol cash prices at $2.50/gal last week compared to $1.99 for the week that ended 1/14.
The other regions dropped from $2.34 – $2.07 last week to $2.11 – $1.94/gal.
Meanwhile gasoline futures were at $2.4019/gal.
The weekly spot price for B100 fuel was $5.18/gal during the week of 1/14.
That, was up OF $0.18/gal from last week according to the USDA.
USDA’s weekly Crush report showed the estimated processing value of soybeans was $17.75/bu on $13.91 cash beans.
That compared to $17.29 reported prior week on $13.90 beans.
In energy market, oil prices settled higher on Friday, boosted by supply constraints and worries of a Russian attack on neighbouring Ukraine, pushing prices toward their fourth weekly gain despite sources saying China is set to release crude reserves around the Lunar New Year.
Indeed, Brent crude futures settled $1.59, or 1.9%, higher at a 2-1/2-month high of $86.06 a barrel, gaining 5.4% in the week.
U.S. West Texas Intermediate crude gained $1.70 , or 2.1%, to $83.82 per barrel, rising 6.3% in the week.
Both Brent and U.S. futures entered overbought territory for the first time since late October.
On the freight market, the Baltic Exchange’s dry bulk sea freight index fell for a sixth straight session on Friday, weighed down by weaker rates across vessel segments.
The overall index, which factors in rates for capesize, panamax and supramax vessels, fell 109 points, or 5.8%, to 1,764, its lowest since early March 2021.
The index has lost nearly 23% this week.
The capesize index dropped 250 points, or 14.3%, to 1,496, its lowest since late Feb. 2021.
The index is down 38% this week.
Average daily earnings for capesizes, which transport 150,000-tonne cargoes such as iron ore and coal, dropped by $2,070 to $12,407.
The panamax index slipped 77 points, or 3.1%, to 2,375, its lowest since Dec. 21.
Average daily earnings for panamaxes, which ferry 60,000-70,000 tonne coal or grain cargoes, fell by $693 to $21,376.
The supramax index fell 18 points to its lowest level since April at 1,897.
On equities markets, on Friday the Dow Jones Industrial Average fell 201.81 points, or 0.56%, to 35,911.81, the S&P 500 gained 3.82 points, or 0.08%, to 4,662.85 and the Nasdaq Composite added 86.94 points, or 0.59%, to 14,893.75.
For the week, the S&P 500 fell 0.3% while the Dow fell 0.9% and the Nasdaq fell 0.3%.
The U.S. Dollar Index fell 0.59% at 95.161, its worse weekly performance in eight months.
In Canada, as of January 10, 2022, Canadian wheat prices for FOB delivery West Coast were (Cdn$/mt):
– for the N1 class CWRS 13.5% – $488.34 per tonne, down C$23.35/t from prior week;
– for the N2 class CWRS 13.0% – $487.77/t, down C$10.8;
– for the N3 CWRS – $461.78/t, down C$9.15 from prior week;
– for the N1 CWAD 13% (durum wheat first class), average street prices in REGIONAL ZONES were at C$746.82 per tonne, up C$11.57 from prior week.
Deferred average prices for delivery in March ’22 were at C$758.72 per tonne.
Meanwhile spot export basis West Coast & Central SK was at C$ 48.75 per tonne, for a total delivered FOB price Great Lakes of C$ 795.57 per tonne, down C$52.57/t.
(1USD=Cnd$1.2520).
In South America, as of January 13, 2022 – Argentina Wheat Grade 2 export price, (Up River) was at $300, down $8 from prior week.
Argentina corn feed was unchanged for the week, closing at $270.
Brazilian corn feed (Paranagua) was at $277, down $6 from prior week.
Argentina barley feed, was down unchanged on week, posting at $298.
Argentina soybean was down $4 at $599.
Brazilian soybean fell $3 finishing the week at $540.
In Europe, EU wheat has slides to 3-month low.
Strength in the euro and investor worries over rising inflation contributed to the weekly losses.
Indeed, the wheat contract, eased by 11 euros to 263.5 euros posting a 4% weekly losses.
Corn prices fell 4.25 euros on Friday, to close at 239 euros per tonne shedding by 1,75% for the week.
In rapeseed, volatility was the name of the week’s market.
Indeed, February futures stumbled down from the past week record high of 828€/t, to 770€/t at the end of this week, and settling more then 7% lower, limiting losses in Friday session.
March-22 UK feed wheat futures fell £7.9 from prior week, closing at £208.85/t.
Meantime, as of January 13, 2022, FOB prices in US dollar for French wheat with 11.5% protein and February delivery, were at $ 316/mt, unchanged from prior week.
French durum wheat, FOB Port la Nouvelle was at $552/mt, up $14 from prior week.
French durum wheat – basis La Pallice, quoted $515.38/mt, up $7.29 from prior week.
Spanish durum wheat Sevilla (DepSilo), was at $624.19/mt, up $14.48 from prior week.
Italian durum wheat Bologna (Delivered to first customer), was valued this week at $612.22 per tonne.
German wheat (Depsilo) with 12.5 pro was at $329.85/mt, down $0.97 from last week.
Baltic wheat (Delivery First) was at $274.87/mt, down $9.66.
Corn delivered Bordeaux Spot – July 2021 basis was at $277.16 per tonne, down $0.59 from prior week.
FOB Rhin Spot – July 2021 basis was at $286.32 per tonne, up $0.66 week on week.
Feed barley delivered Rouen – July 2021 basis was at 278.31 $/t, down $2.83.
Malting barley FOB Creil Spot – July 2021 basis was at $423.76 per tonne, up $6/t from prior week.
Rapessed FOB Moselle Spot – Flat – 2021 harvest was at 852.1 $/ton, down $51.18 compared to prior week.
Standard sunseed delivered St Nazaire Spot – Flat – 2021 harvest was down 1.41$ from prior week at $698.63 per tonne.
From the Black Sea basin, as of January 13, 2022, Russian wheat with 12.5% protein content loading from Black Sea ports for supply in January stood at $330 a tonne free on board (FOB), unchanged from late 2021, IKAR said.
Meantime, Russia has set out its grain export taxes for Jan. 19-25, the Agriculture Ministry said on Friday.
Particularly, export duty will be for wheat at $97.5 per tonne, for barley at $79.0/t, for corn at $ 46.1/t.
Indicative prices will be $339.3 for wheat, $297.9 for barley and $250.9 for corn.
For Jan 12-18 the tax were $98.2 for wheat, $86.2 for barley, $67.7 for corn.
Indicative price were $340.4, $308.2, $281.8 respectvily.
According to Svetlana Malysh, Black Sea Agricolture Markets analyst from Refinitiv, “Ukraine corn CPT-prices picked up to $269-273 per tonne amid tighter supplies during the long winter holidays and export commitments to be covered, but once farmers returned back to the market, export business for corn increased significantly and prices edged down by around $1.
However, asking prices for Ukraine corn were steady at $278-280 per tonne FOB for Jan-March, underpinned by demand from Chinese buyers and strong domestic prices and with a wide gap to buying ideas.”
From Australia, prices for feedgrain have steadied in eastern Australian markets this week amid thin buying from domestic consumers who are weighing up their many options for ration mixes for coming months.
In the north, a bumper sorghum harvest and a big corn crop are being considered as inputs, while central and southern markets are looking at barley versus off-spec wheat, both of which are in ample supply.
Solid global demand for wheat and barley appears to have put a floor in the market at prices most growers are prepared to hit with only modest amounts as they quantify the quality of what for many was a weather-affected harvest.
Meantime indicative delivered prices in Australian dollars per tonne. were:
Barley Downs: (Nearby) $290, down $7 from Dec. 16;
SFW wheat Downs: (Nearby) $308, down $14 from Dec. 16;
Sorghum Downs: (Nearby) $325, down $15 from Dec. 16;
Barley Melbourne: (Nearby) $310, up $10 from Dec. 16;
ASW wheat Melbourne: (Nearby) $380 down $10 from Dec. 16.
SFW wheat Melbourne: (Nearby) $340up $5 from Dec. 16.
(AUD/USD=> US$0.7284).
On international trade scenario, China sold 100% of the wheat put up for auction on Jan. 5, or 506,568 tonnes, said a statement from the National Grain Trade Center on Monday.
The grain, targeted only at millers, came from the 2014 through 2020 crop years and sold at an average price of 2,707 yuan ($424.73) per tonne.
South Korean animal feedmaker Nonghyup Feed Inc. (NOFI) purchased around 130,000 tonnes of animal feed corn in an international tender which closed on Tuesday.
But NOFI rejected all offers and made no purchase of 65,000 tonnes of feed wheat also sought.
The corn was bought in two 65,000 tonne consignments all at an estimated $333.65 a tonne c&f plus a 1.50 surcharge for additional port unloading.
Trading house CHS was believed to have sold one consignment for arrival around April 1.
Shipment of the consignment was sought if sourced from the U.S. Pacific Northwest coast between Feb. 27-March 18, if from the U.S. Gulf or Black Sea region between Feb. 7-26, from South America between Feb. 2 and Feb. 21 or from South Africa for Feb. 12-March 3.
Trading house Posco was believed to have sold one consignment for arrival around April 10.
Shipment if sourced from the U.S. Pacific Northwest coast was sought for March 8-27, if from the U.S. Gulf or Black Sea region between Feb. 16-March 7, from South America for Feb. 11-March 2 or from South Africa for Feb. 21-March 12.
Offers for a third corn consignment for arrival around April 30 also sought in the tender were rejected with no purchase made.
Paraguay was excluded as a corn origin.
The feed wheat was sought for arrival around April 25.
Lowest feed wheat offer was said to be $341.50 a tonne c&f plus a surcharge for additional port unloading for optional-origin supplies from trading house Olam.
The Korea Feed Association (KFA) Busan section also separately purchased some 129,000 tonnes of animal feed corn in an international tender which closed on Tuesday.
It was purchased in two consignments at $338.35 and $335.30 a tonne c&f plus a surcharge for additional port unloading, traders said.
Sellers were believed to be trading houses Bunge and CJ International with corn arrival in South Korea in March and April.
Iraq’s state grains buyer is believed to have purchased about 150,000 tonnes of Australian-origin milling wheat in a restricted purchase tender this week at about $447 a tonne c&f.
South Korea’s Major Feedmill Group (MFG) purchased about 198,000 tonnes of corn in an international tender which closed on Friday.
The corn was bought in three consignments.
One consignment of 68,000 tonnes to be sourced from worldwide origins was said to have been sold by trading house Bunge at $328.20 a tonne c&f plus a $1.75 a tonne surcharge for additional port unloading.
The corn is for arrival in South Korea around April 30.
A second consignment of 65,000 tonnes also to be sourced from worldwide origins was said to have been sold by trading house Pan Ocean at $328.00 a tonne c&f plus a $1.50 a tonne surcharge for additional port unloading.
The corn is for arrival in South Korea around May 3.
A third consignment of 65,000 tonnes expected to be sourced from South America or South Africa was said to have been sold by trading house Cofco at $327.69 a tonne c&f plus a $1.50 a tonne surcharge for additional port unloading.
The corn is for arrival in South Korea around May 8.
The Taiwan Flour Millers’ Association has issued an international tender to purchase 49,395 tonnes of grade 1 milling wheat to be sourced from the United States.
The deadline for submission of price offers is Jan. 20.
The tender seeks a range of different wheat types in one consignment for shipment from the U.S. Pacific Northwest coast between March 16 and 30.
Wheat types sought include northern spring, dark northern spring, hard red winter and white wheat.
In its last reported tender on Dec. 23, the association bought an estimated 110,000 tonnes of milling wheat to be sourced from the United States.
Algeria’s state grains agency OAIC has purchased between 500,000 to 570,000 tonnes of milling wheat expected to be sourced mainly from to be sourced mainly from Romania, Bulgaria, Ukraine and Argentina in an international tender on Friday.
No sales of French wheat were reported.
Diplomatic tensions between Paris and Algiers in recent months appeared to have reinforced a push by OAIC to diversify its wheat sources away from France, traditionally its leading supplier, according to traders.
Estimates of purchase prices is of $350 a tonne c&f.
The current tender sought wheat for shipment in two periods – March 1-15 and March 16-31 – from the main supply regions including Europe.
If sourced from South America or Australia, shipment is one month earlier.
Watching next week market, US markets and Federal government offices will be closed on Monday due to Martin Luther King Jr. Day.
That will push back the weekly reports back a day, starting with the Export Inspections report on Tuesday morning.
Weekly EIA data will be released on Thursday morning.
The weekly Export Sales report is expected to be delayed to a Friday morning release because of the Monday holiday.
Monthly Cattle on Feed data will be released on Friday afternoon, with the Cotton Ginnings report out that morning.
February serial options for the grains expire on Friday.
Author: Sandro F. Puglisi
