Protein Markets
- Brazilian soybean production has been forecast up 2MMT to 126MMT for the 2019/20 season reflecting better than expected yields
- US soybeans are 48% blooming vs 31% last week and crop ratings down 3% to 68% good to excellent
- The Chinese agriculture ministry announced it expects soy imports to rise to 94MMT for old crop up 3MMT on last month’s forecast
- India has planted 13.9m hectares of oilseeds vs 7.5m hectares this time last year with over a third of hectares expected to be soybeans
- US ethanol/DDG production continues to improve with an average for the first week of July at 914,000 barrels of ethanol per day still 14% below this time a year ago
PKE Markets
- Malaysia has announced it will suspend licenses of palm plantation and mills without the Malaysian Sustainable Palm Oil certification from January for large operations and July 2021 for smallholders
- Malaysia has released June figures showing PKE production was up 11.3% on last month with yields of fruit bunches up 18.6%
- Indonesia is allocating $195M USD from the state budget to subsidise palm oil biodiesel production in an effort to boost palm production and economic activity post the pandemic
Grains Markets
- The US announced 1.365MMT of corn sales to China with just over half old crop, making the second largest announcement of corn sales to China from the US in history on a single day
- US corn acres have been cut by 5 million acres the largest in 37 years as concerns over the current pandemic cast doubt for demand
- US corn is now 29% silking vs 10% last week and crop conditions are down 3% to 69%
- The Argentine corn crop is now 86% complete harvested up 4% from last week and wheat plantings are now 87% complete up 7% from last week
- French corn has been rated as 83% good to excellent unchanged from last week
- The Russian wheat crop has been cut to 76.5MMT from 78MMT with poor yields in Southern Russia from extended dry periods
- Winter crop conditions across South Australia, New South Wales and Victoria are nearing ideal with more rain needed for Western Australia and Queensland to support yields
- An Ashburton farmer has just beaten his own world record for the highest average wheat yield by paddock at a whopping 17.4MT/ha
Currency
- The NZD has gained over half a cent last week opening at 65.50 US cents with US June budget figures revealing the deficit was $864.1 billion USD vs $8.5 billion USD June last year
- New Data released showed New Zealand Food Price index has risen by 0.5% from May to June and Job Ads have increased 46.9%
- President Donald Trump has announced that a phase 2 deal between China and the US is now impractical given the current pandemic situation
Dairy Markets
- Last week’s GDT Auction showed the largest single average price rise since 2016 by 8.3% marking the fourth consecutive gain in the twice monthly auction
- Fonterra has launched a new Co-operative Difference Payment for farmers who meet on-farm sustainability and value targets of up to 10 cents
- Rainfall over the past month has eased drought conditions over much of the country except the lower South Island however recent NIWA data shows New Zealand had 41 months of consecutive at or above average temperatures
