OVK Weighbridge, 16 July 2020

The Weekly Weighbridge

16 July 2020

Important facts for the week

•             China booked its second-largest single-day US corn purchase on record according to USDA, as the country works to fulfill its Phase 1 trade deal obligation to dramatically increase US farm product imports. The USDA said China bought 765 000 MT of maize for shipment in the current marketing year and 600 000 MT for shipment in the following year.

•             Sovecon decreased its estimate for Russia's 2020 wheat crop to 79.7 MMT from an earlier estimate of 80.8 MMT due to low yields in Russia's southern regions. Russia, the world's second largest wheat exporter after the EU, is harvesting this year's crop amid dry weather in several of its southern regions.

•             According to customs data from the General Administration of Customs, China's monthly imports of soybeans increased by 71% compared to last year to a record high in June 2020 as cargoes arrived from Brazil. China imported 11.16 MMT in June 2020 from 6.51 MMT a year ago and which is 19% higher than the 9.38 MMT imported in May 2020.

News for the week

Maize

International maize prices traded lower this past week with market participants still expecting ample global maize stock to keep pressure on prices.

The condition of the 2020 US maize crop decreased by 2% last week to 69% rated good to excellent. Twelve states shown that the maize condition declined last week while two states was left unchanged. Most of the improvements were found in the northern areas while most of the declines were found in the central and eastern areas.

According to the SAGIS weekly producer deliveries report for the week that ended on 2020/07/10, maize deliveries in South Africa for the 2020/21 harvest season have reached a total of 3 156 452 MT for White Maize and 3 780 522 MT for Yellow Maize.

According to the SAGIS weekly import/export report for the week that ended on 2020/07/10, white maize exports for the 2020/21 harvest season have reached a total of 244 734 MT, with 117 223 MT exported to Zimbabwe, 44 994 MT exported to Botswana, 20 014 MT exported to Ethiopia, 27 488 MT exported to Mozambique. Yellow maize exports for the 2020/21 harvest season have reached a total of 499 146 MT, with 200 430 MT exported to Taiwan, 172 071 MT exported to Korea and 52 470 MT exported to Japan.

China booked its second-largest single-day US corn purchase on record according to USDA, as the country works to fulfill its Phase 1 trade deal obligation to dramatically increase US farm product imports. The USDA said China bought 765 000 MT of maize for shipment in the current marketing year and 600 000 MT for shipment in the following year.

South African (SA) maize prices traded lower for White Maize and Yellow Maize this past week due to lower international prices and stronger ZAR.

Wheat

US wheat prices traded higher this past week due lower expected global stocks due to lower production estimated for the new season in Russia, France and Ukraine.

According to FranceAgriMer, the French farmers have harvested 10% of this year's soft wheat crop by 6 July 2020, compared with 4% a week earlier and also ahead of the 6% harvest progress estimated a year ago.

The EU exported 241 577 MT of soft wheat for the first two weeks of the 2020/21 season, which is 62% lower than the same time in the previous season.

Sovecon decreased its estimate for Russia's 2020 wheat crop to a total of 79.7 MMT from an earlier estimate of a total of 80.8 MMT due to low yields in Russia's southern regions. Russia, the world's second largest wheat exporter after the EU, is harvesting this year's crop amid dry weather in several of its southern regions.

APK-Inform increased Ukraine's wheat harvest to 25.3 MMT from 24.5 MMT estimated a month earlier. APK-Inform also increased its 2020/21 wheat export estimate to 17.3 MMT from the 16.5 MMT previously estimated.

According to customs data, UK wheat exports increased in May 2020 and was well ahead of the previous season's pace. Wheat exports for the month totalled 95 210 MT, which is higher than wheat exports the previous month at 44,759 MT.

Egypt, the world's largest wheat importer, has stated that its local wheat buying season had ended with a total of 3.5 MMT purchased from farmers who were largely unaffected by coronavirus disruptions. Egypt exempted farmers from a nationwide nightly curfew imposed to curb the spread of the disease to allow them to harvest their crops uninterrupted.

South African (SA) wheat prices traded mixed this past week with July 2020 trading higher and September 2020 lower. The inverse prices dynamics and the ZAR are currently the main factors influencing the wheat prices.

Soybeans

International soybean prices traded lower this past week despite strong demand from China for soybeans.

The condition of the 2020 US Soybean crop decreased by 3% last week to 68% rated good to excellent. Seven states shown that the soybean condition improved last week while eleven states shown that the soybean condition declined last week. Most of the improvements were found in the northern and southern areas while most of the declines were found in the central areas.

According to customs data from the General Administration of Customs, China's monthly imports of soybeans increased by 71% compared to last year to a record high in June 2020 as cargoes arrived from Brazil. China imported 11.16 MMT in June 2020 from 6.51 MMT a year ago and which is 19% higher than the 9.38 MMT imported in May 2020.

US soybean crushing declined for a third straight month in June, but the 1.4% decrease was smaller than expected and the total amount was the largest June crush on record, according to National Oilseed Processors Association (NOPA). NOPA said its members processed 4.552 MMT (167.263 million bushels) of soybeans last month, which is lower than 4.615 MMT (169.584 million bushels) processed in May but is higher than the 4.050 MMT (148.843 million bushels) crushed in June 2019.

 South African (SA) soybean prices traded lower this past week due to lower international prices and stronger ZAR