Bunge and Viterra have finalised a merger deal, creating one of the world’s largest agricultural trading firms. The deal brings Bunge closer in global scale to leading rivals Archer-Daniels-Midland and Cargill and will be examined closely by antitrust regulators. Bunge is already the world’s largest oilseed processor and analysts said it and Viterra’s crushing businesses could face regulatory scrutiny in Canada and Argentina.

President Putin himself is now saying Russia is considering leaving the Black Sea grain deal. He is reported as having said Russia only agreed to the deal’s extension several times not in Ukraine’s interests, but for its allies in Africa and South America, to support developing countries, our friends, and in order to achieve the lifting of sanctions from our agricultural sector. Wires quoted him as saying Russia had been deceived once again and he was thinking about how Russia could get out of what he termed this so-called grain deal.

The European Commission’s latest MARS report for Ukraine has pegged 2023-24 canola area at 1.8 million hectares (Mha) (1.0Mha previous year, 1.0Mha average). With productivity placed at 3.1t/ha (2.9t/ha, 2.6t/ha), production is forecast at 5.5Mt (2.9Mt, 2.7Mt). Using remote sensing, it estimates the share of canola has significantly increased in controlled areas at the expense of wheat. Area planted excluding Donetsk, Zaporizhzhia, Luhansk and Kherson seen at 1.6Mha (0.8Mha, 0.9Mha). With a yield of 3.1t/ha (3.0t/ha, 2.7t/ha), output seen at 5.0Mt (2.5Mt previous year, 2.4Mt average).

Crop consultant Michael Cordonnier cut his US corn yield forecast by 1 bu. to 178 bu. per acre, noting moisture stress across 45 percent of US corn acres. He now projects the US corn crop at 14.86 billion bushels. Dr Cordonnier also trimmed his soybean yield by 0.5 bu. to 51.5 bu. per acre.

Brazilian national agricultural agency, Conab, revised upward its Safrinha corn crop estimate by 0.2Mt to a record 96.3Mt, up 12pc from the previous season, reflecting a slight upward revision to area planted. In top growing state Mato Grosso, harvest has just started and crops look “excellent” although dry weather in May reduced yield potential in Parana, Goias and Piaui states. Total corn crop seen at 125.7Mt with exports unchanged at 48Mt. It also revised up the 2022-23 soybean crop by 0.9Mt to 155.7Mt, reflecting upward revisions for area and yields. 

US Environmental Protection Agency (EPA) now has until June 21 to finalise biofuel-blending quotas under an agreement reached with ethanol advocacy group Growth Energy. EPA previously had agreed to finalise quotas by June 14. The delay could allow EPA to incorporate more data on biofuel production into the final rule. 

Australia

Local markets showed some life yesterday across the board in a mixed way. Current crop wheat in SA was a touch firmer and saw some more grower liquidity exchange hands. The ASX eastern wheat January contract settled the day down $2/t. Barley markets were largely unchanged with $280/t FIS still trading in Kwinana port zone on current crop. Canola markets again were a touch firmer on current crop and we are likely to see further strength in bids today with stronger Matif and Winnipeg markets overnight.

Rainfall totals for the week were variable but we saw some good falls in many areas with southwest Qld picking up 5-50mm. Parts of NSW picked up 5-100mm with the highest totals in the southwest. In Vic the Goulburn and Ovens-Murray valleys saw up to 200mm with the Wimmera and Western Districts getting up to 100mm. In SA the South East saw between 25-100mm with Eyre Peninsula picking up 5-50mm. Southwest WA and the Lower Great Southern saw between 10-200mm.