Oct 20, 2021

Markets Supported Overnight as Demand Remains Firm

Russia’s 2022 wheat crop to increase

Russia’s 2022 Wheat Crop Seen to Increase

  • Sovecon reported Monday that they see Russia’s wheat crop growing to 80.7 million tonnes in 2022 due to good weather for winter wheat.

  • This would be up from the 75.5 million tonnes in 2021.

  • Weather had been dry in the second half of summer, but ample rains in early autumn helped moisture levels across the country.

  • The consultancy sees total winter and spring wheat acreage to remain stable at 70.9 million acres.

  • Winter wheat sowing is at 37.7 million acres to date, down from 41.0 million last year at this time.

FBN’s Take On What It Means: The report explained that Russian farmers had been facing numerous challenges to date: market regulations, rallying input prices, and summer droughts. The weather has finally started to cooperate. While winter wheat acreage may end up being lower than last year, it is expected to be offset by a substantially lower winter-kill. Spring wheat may also see less acreage on state export taxes prompting farmers to switch to other crops or leave fields fallow.

FBN
FBN



USDA Attaché Report Shows Smaller 2021/22 Indian Cotton Crop

  • The USDA FAS post in Mumbai released an attaché report on Monday showing India’s 2021/22 cotton crop falling 500,000 480-lb bales to 28 million.

  • Harvested acreage is expected to fall about 740,000 acres, 2.4% lower than the official USDA figures.

  • However, yields are expected to be one point higher than official figures.

  • Total domestic consumption is also seen rising by 500,000 bales to 26 million on strong export demand.

FBN’s Take On What It Means: The Mumbai FAS post sees lower production than official USDA estimates due to heavy rains in September and October. First pick crop quality is also likely to be poor, though subsequent pickings could be better if recent good weather persists. With mill operations returning to full capacity, demand for textiles will likely to continue sustaining higher prices.

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Marketwatch: Nov, 28

cmdty National Corn Price Idx: ZCPAUS.CM

open: 5.5712
high: 5.7406
low: 5.5262
close: 5.7276

cmdty National Soybean Price Idx: ZSPAUS.CM

open: 12.1595
high: 12.1807
low: 12.0432
close: 12.166

cmdty National Hard Red Winter Wheat Price Idx: KEPAUS.CM

open: 8.331
high: 8.4769
low: 8.226
close: 8.444

cmdty National Soft Red Winter Wheat Price Idx: ZWPAUS.CM

open: 7.7213
high: 7.8263
low: 7.6213
close: 7.7716