Sep 16, 2021

Prices Continue to Drift Higher Ahead of Harvest

Argentina corn set for record harvest

Argentina Corn Set for Record Harvest

  • The Buenos Aires grains exchange reported Argentina’s corn crop will reach a record 55 million tonnes for 2021/22.

  • The record production will come from more acres devoted to the crop, 17.5 million acres versus 16.3 million last year.

  • The increased acreage is coming at the expense of soybean acres; soybeans are projected to have 44 million tonnes in total production, a slight uptick from the previous season.

  • This is the eighth consecutive year for increased corn acres, and the sixth consecutive for decreased soybean acres.

  • Farmers are switching to corn as a way to deal with increased pressures from drought.

FBN’s Take On What It Means: In contrast to soybeans, corn has a wider sowing window. This allows it to avoid starting key development phases in January and early February, the driest and warmest part of the year. The droughts from last season and the continued presence of La Niña are pushing farmers to adopt the more versatile crop. Planting of early corn in Argentina begins in the coming days; soybean plantings will start in October.

FBN
FBN

Strategie Grains Cuts Wheat Crop for EU

  • The agency now sees the soft wheat crop at 129.1 million tonnes, which is down 2.4 million tonnes from the previous outlook.

  • The agency’s harvest report showed mixed quality for soft wheat and durum thanks to heavy rains this summer.

  • EU wheat exports now are seen at 31 million tonnes, down 1.7 million versus last month.

  • World wheat production was lowered 10.9 million tonnes to 739.4 million, which includes durum.

  • Production cuts were made for the Black Sea and North America.

  • EU barley production was cut as well by 700,000 tonnes to 52.3, which now is 3.1 million tonnes below last year’s harvest.

  • Versus last year, Strategie Grains sees grain production up 7.7 million tonnes for the EU but versus its outlook last month, production is down five million.

FBN’s Take On What It Means: The agency expects a demand shift to maize and meals thanks to higher wheat and barley prices. The global situation for wheat and barley certainly is tighter than thought a few months ago. The agency’s outlook is supportive of prices in general.

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Kevin McNew

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Magazine

Marketwatch: Oct, 24

cmdty National Corn Price Idx: ZCPAUS.CM

open: 5.1374
high: 5.1867
low: 5.1249
close: 5.1668

cmdty National Soybean Price Idx: ZSPAUS.CM

open: 11.801
high: 11.861
low: 11.7324
close: 11.7679

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

open: 7.4043
high: 7.5443
low: 7.3993
close: 7.5365

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

open: 6.9986
high: 7.0999
low: 6.9861
close: 7.0671