Archived Posts

News Flash: December 18, 2014

INDUSTRY

Farmers quitting oil rapeseed due to difficulties

After a European Farmers’ organization Copa-Cogeca meeting, the forecast for EU rapeseed production is predicted to drop next year. The organization’s workers say the neonicotinoid seed treatment ban is already effecting growers and influencing their desire to stray away from this more difficult crop. East England growers have reported total crop losses even with the use of repetitive organophosphate spraying. The EU oilseeds harvest reached 24.4 tonnes (mt) in 2014, but is predicted at 32mt for 2015. Newly elected chairman of the oilseeds working party, Arnaud Rousseau, from France, said: “The situation is problematic and it is expected to get worse, causing job losses especially in rural areas.” The Courier

Global agri-commodities prices likely to remain volatile in 2015

Agricultural commodities are expected to remain volatile globally in 2015. Prices are expected to stay high in the first half, with strong buying support on lows, but may decrease due to global oversupply during the second half. According to a Rabobank study, the basics in agri-commodities show to be more balanced through 2015, leading to slimmer trading ranges in comparison to 2014. Demand growth has slowed down in recent years, but consumption growth will be stimulated by lower prices. Biofuel demand has experienced a plateau recently due to slower mandate growth, the low prices of crude oil, and a reduction in global import demand. All will contribute to the worldwide supply of grains and oilseeds, overproducing the demand in 2015. The lower prices levels expected in 2015 will also provide incentive for consumption to exceed the forecast levels, said Stefan Vogel, global head of Rabobank’s food and agribusiness research and advisory. Business Standard

BIOFUEL

Where’s the upside in $60 oil?

Biodiesel and ethanol co-products are aiding in the decreasing crude oil prices and rising corn prices, said Jim Lane. Lane also noted that ethanol is predicted to decline from Sept. 10 to Dec. 10 along with prices for corn oil and dried grain distillers, with solubles rising 10% and 7%. “A two-product strategy is no guarantee of good times during period of rapidly falling energy prices. But it is a hedge, and a solid one based on the data we’re seeing,” he writes. BiofuelsDigest.com

CANOLA

North American grain/oilseeds review: canola up, finding support from soybeans

ICE Futures Canada canola contracts ended on Wednesday with some support from the Chicago soybean futures advances. Analysts report canola outpacing the US markets this week. The steady demand for canola oilseed, combined with chart-based buying, stands behind canola’s strength. About 22,775 contacts were traded on Wednesday and 23,773 on Tuesday. Milling wheat, durum and barely were not traded. Canadian Cattleman

CORN

USA – 2014/2015 corn harvest quality report indicates good quality for record crop

The U.S Grains Council’s 2014-2015 Corn harvest Quality Report showed 88% of samples rating at grade No. 2 or better. “This year’s report shows for the second year in a row that the United States has an abundant supply of high-quality corn available to export,” said Kurt Shultz, USGC director of global strategies. “The average values from the report indicate that the United States will have a crop that will store and handle well as it moves through the market channels to export.” The 2014 corn crop is entering the marketing channels with a number of key characteristics listed in the report. SeedQuest

China approves Syngenta’s Viptera corn-reports

According to Chinese authorities, U.S. imports of a type of genetically modified corn developed by Syngenta AG have been approved by the government. Three sources at large Chinese importers reported that they have yet to receive notice of a pending approval. The agriculture ministry still needs to give its stamp of approval even with the clearing of the strain by China’s bio-safety committee. Reuters

PALM

Crude palm oil futures rise 0.42% on pick-up in demand

Crude palm oil prices rose 0.42% in futures trading today. Fresh positions have been created due to the rising demand in the spot market during an increasing trend overseas. Crude palm oil for delivery in January rose by 0.42% at the Multi Commodity Exchange and oil for delivery in December rose 0.33%. Analysts expect the creation of these positions to lead to the rise in crude palm oil prices at futures trade. The Economic Times

SOYBEAN

November soya crush seen at record on exports, profit margins

US processors worked with a record amount of soybeans during the month of November to keep up with the high export demand.  Crushers were driven by the high prices, leading to increased profitability, to keep their plants open for as long as possible.  “These by-far record high crush margins likely spurred a record-high crush,” said Anne Frick, oilseeds analyst at Jefferies Bache.  Analysts average estimates that the National Oilseed Processors Association’s monthly soyabean crush report, released Monday, will show 165.404 million bushels for November. Reuters

Brazil’s Abiove stands by more modest soy forecast

Brazilian government increased its forecast estimate to 95.8 million tonnes for the 2014-2015 soybean crop. “Productivity in Mato Grosso is going to be a little below average this year,” Abiove’s General Secretary Fabio Trigueirinho told journalists, citing planting delays in the country’s top growing state due to dry weather in October and November.  At this time we are comfortable with 91 million tonnes,” he said of the forecast, which would still be a record crop for Brazil. The U.S Department of Agriculture expects a 94-million tonne soy crop from Brazil. Abiove also expects a 4% increase in soy exports this year, at 48 million tonnes. Improvements have been made at Brazil’s main shipping port in Santos. Alternative shipping routes to meet increased volumes, along with environmental concerns, are also being addressed. Reuters