World market - Incubator

Grain quotes on March 20, 2023:

Corn on CBOT fell by 1.25;

SRW wheat on CBOT fell by 9.75;

HRW wheat on KCBT decreased by 6.00;

HRS wheat on MGE fell by 9.25;

Oats on CBOT increased by 7.75;

Rice on CBOT increased by 0.38.

Russia supports the project of the "New Land Grain Corridor" for grain supplies to the Chinese market. Prime Minister Mikhail Mishustin emphasized the importance of ensuring food security and plans for delivering agricultural products to China.

Export of goods from Russia to China is growing, but not wheat. Supplies of electricity and aluminum have increased, but wheat volumes remain at the same level due to phytosanitary regulations and transportation difficulties.

China imported 6 million tons of wheat, with Russia supplying only 30,000 tons. The main suppliers are Australia and Canada.

Analysis of sunflower sowing areas in the Rostov region showed that it occupies the third place in terms of areas after the Saratov and Orenburg regions. In 2023, the Rostov region led in gross yield and has high productivity. In 2024, the sown areas increased by 0.3%, amounting to 945.1 thousand hectares. Seed yields can reach 2,179.8 thousand tons.

The FAO reported that global food prices reached a historic high in February. The index rose by 3.9% compared to January and by 24.1% year-on-year.

The biggest price increases were observed in vegetable oils and dairy products, while sugar prices decreased by 1.9%.

China has reduced its imports of Russian rapeseed oil by 33%, but Russia remains the main supplier. This year, China purchased oil from 20 countries. The area of ​​rapeseed sown in Russia has increased by 29.3%, with a forecasted harvest of 5 million tons. Domestic demand for rapeseed oil is low, so the majority will be exported.

Turkey insists on continuing the four-sided grain deal and hopes for Russia's participation.

Corn on CBOT fell by 10.25 cents to 527.00 cents/bushel, SRW wheat by 29.50 cents to 697.50 cents/bushel, HRW by 14.50 cents to 860.25 cents/bushel, HRS by 15.00 cents to 887.00 cents/bushel, oats by 5.25 cents to 438.50 cents/bushel. Rough rice on CBOT rose by 0.01 usd/cwt to 15.90 usd/cwt.

In the 2023/24 season, China has become the largest importer of Russian rapeseed meal, surpassing the European Union. Russian producers are seeking new markets after EU sanctions. Companies are transitioning to molassed rapeseed meal and targeting the Chinese market.

In 2024, agricultural crops in the Saratov region covered an area of 4.3 million hectares, which is 2% more than the previous year. 83% of the grain plan has been threshed, and 3.33 million tons of grain have been harvested. An expected harvest of 4 million tons will meet the region's needs and allow for exports.

180,000 tons of seeds and 159 combines were purchased. Agricultural support amounts to 1.8 billion rubles.

India plans to limit sugar exports for the current season to prevent price increases. This is the first restriction since 2016 due to record production. The export will affect global prices, awaiting official announcement next month.

Sunflowers in the South have suffered from frost and heat. The harvest is being assessed earlier than usual with pessimism. Yellow tips and green stems indicate problems with humidity and heat. Harvesting has begun due to damage, with mass harvesting planned for September.