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Global feed grain market: Rumors of Chinese purchases, geopolitical tensions, and higher feed grain prices

 Last Update: 2022-02-17
 Source: Internet
 Author: User

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Foreign media January 23 news: The week ended January 21, 2022, global feed grain prices mostly rose
.
International crude oil futures continued to rise, boosting the outlook for biofuel demand; tensions between Russia and Ukraine may disrupt grain trade, boosting grain risk premiums; South American weather uncertainty also increased volatility in feed grains
.

On Friday, March 2022 corn futures on the Chicago Board of Trade (CBOT) settled at around 616.
25 cents a bushel, up 20 cents, or 3.
4%, from a week ago
.
US Gulf No.
2 yellow corn was quoted at 717.
25 cents a bushel, up 32 cents, or 4.
7%, from a week ago
.
March 2022 corn futures on the EURONEXT exchange settled at around €247.
5/tonne, up €8.
50 or 3.
6% from a week ago
.
The FOB spot price of Argentine corn in Shanghe was $276/ton, up $6 or 2.
2% from a week ago
.
March corn futures settled at 2,708 yuan/ton on the Dalian Commodity Exchange, up 17 yuan or 0.
6% from a week ago
.

　　This week, international crude oil futures rose for the fifth consecutive week and hit a new seven-year high, as global crude oil supplies were tight and geopolitical tensions raised the risk premium of oil prices
.
On Friday, the West Texas Intermediate (WTI) March contract on the New York Mercantile Exchange (NYMEX) closed at $85.
14 a barrel, and March Brent crude futures closed at $87.
79 a barrel, both higher than a week earlier.
rose about 2%
.
After rising more than 50% in 2021, oil prices have risen more than 12% this year
.

　　On Friday, the U.
S.
dollar index closed at 95.
64, up 0.
5% from a week earlier
.

　　South American weather markets continue, Brazil corn production forecast lowered

　　Since January 15, Argentina and southern Brazil have seen rains of varying intensities, with more rain in Argentina helping to stabilize crop conditions
.
Rain is still to come in the week ahead, but it will be hot and dry again from next month
.
Consultancy Safras & Mercado this week forecast Brazil's corn production in 2021/22 to reach 115.
64 million tonnes, down from its December forecast of 116.
085 million, but still well above the 90.
77 million in 2020/21
.
Safras lowered Brazil's first-season corn production to 21.
590 million tons, down from December's forecast of 22.
556 million tons and down from 2164.
5 in 2020/21 due to La Niña weather damage to crops in Parana and Rio Grande do Sul tons
.
However, corn production for the second season is expected to increase to 82.
051 million tons, up from 57.
153 million tons in 2020/21 and above the December forecast of 81.
697 million tons
.

　　Tensions between Russia and Ukraine could affect agricultural trade

　　Tensions have escalated between Russia and Ukraine, the world's largest exporter of wheat and Ukraine a major corn exporter
.
If the conflict escalates, it could affect trade flows
.
Ukrainian corn production in 2021 increased to 40.
5 million tons, contributing to strong Ukrainian corn exports in 2021/22
.
According to customs data, as of January 21, Ukraine's corn exports in 2021/22 reached 13.
714 million tons, a year-on-year increase of 2.
661 million tons
.

　　U.
S.
corn exports accelerate amid rumors of China buying U.
S.
corn

　　Market rumors that Chinese buyers ordered about 1.
5 million tons of U.
S.
corn helped boost corn prices higher
.
Still, nearly 10 million tons of U.
S.
corn ordered by China has yet to be shipped
.
Analysts expect the pace of U.
S.
corn exports to China could pick up in the coming months
.
However, China has been buying large quantities of Ukrainian corn, possibly increasing the diversification of suppliers
.

　　The U.
S.
Department of Agriculture's weekly export sales report showed net U.
S.
corn sales for the 2021/22 season ended January 13, 2022, of 1,091,300 tons, significantly higher than last week and 48% higher than the four-week average
.
Year-to-date U.
S.
corn export sales are 42.
55 million tons, down 9.
1 percent year-on-year
.

　　China's corn imports hit record high in 2021

　　China's corn imports hit a record high in the 2021 calendar year, customs data showed, as tight domestic supplies and soaring prices boosted import growth
.
According to customs data, China will import 28.
35 million tons of corn in 2021, an increase of 152% from 11.
3 million tons in 2020
.
Import demand in China has slowed in the final months of 2021, as higher domestic corn production has led to a pullback in prices and lower pork production profits have led to weaker feed demand
.

　　China's corn imports in December 2021 were 1.
33 million tons, down 39.
9% year-on-year, of which U.
S.
corn imports were 240,000 tons, the lowest level since July 2020 and the lowest level in the same period in three years, as U.
S.
corn imports Higher prices have prompted Chinese buyers to seek other supplies
.

　　Ukraine was China's top corn supplier in December, exporting 920,000 tonnes to China, up from 51,000 tonnes in November but down from 1.
07 million tonnes a year earlier
.

food price bio grain

　　On Friday, the U.
S.
dollar index closed at 95.
64, up 0.
5% from a week earlier
.

　　South American weather markets continue, Brazil corn production forecast lowered

　　Tensions between Russia and Ukraine could affect agricultural trade

　　U.
S.
corn exports accelerate amid rumors of China buying U.
S.
corn

China

purchase

　　China's corn imports hit record high in 2021

　　Ukraine was China's top corn supplier in December, exporting 920,000 tonnes to China, up from 51,000 tonnes in November but down from 1.
07 million tonnes a year earlier
.

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