International

Day one of the US Wheat Quality Council Spring Wheat and Durum Tour concluded with an average yield estimate of 52.3 bushels per acre (bpa), compared to last year’s 48.3bpa and is the highest day one result since the tour began in 1994. A high instance of Fusarium head blight was reported.  

The Manitoba Crop Report for the week ending 23 July noted variable amounts of rainfall were recorded across the province and warmer conditions aided crop growth. Spring wheat is mostly seen in fair/good condition, with 5-10pc reported as poor in the Southwest, Northwest, Central, and Interlake regions. Early seeded canola fields were in the pod-filling stage, with increased levels of flower blast noted due to warm temps. 

Brazil grain exporter association ANEC revised down its July soybean export forecast by 0.3Mt, to 10.4Mt, soymeal exports up 0.2Mt to a record 2.4Mt and corn exports up by 0.1Mt, to 4.6Mt.

According to China’s Ministry of Agriculture, China saw its largest increase in grain output in nine years this summer, driven by a bumper wheat harvest attributed to increases in both area and yield. This year’s summer grain production reportedly reached a record 149.78Mt. 

Indonesia’s Energy Ministry announced plans for widespread use of the palm-oil based B40 biodiesel in 2025, replacing the current B35 blending mandate. It is seeking to ramp up to the new blend of 40pc palm oil to cut energy imports and increase domestic consumption of palm oil. 

Bloomberg reported that the Bunge Global SA planned US$8.2 billion buyout of Viterra Inc. is set to be approved by the European Union after concessions offered by the firms look to have appeased regulator concerns. The merger, announced in June last year, will see Bunge buy Glencore Plc-backed Viterra in stock and cash, with the US crop trader owning about 70pc of the combined entity. It would become the world’s second-biggest agricultural trading company by revenue, dominating the soybean and wheat market.

Australia

In WA, new season canola values remained steady yesterday at around $820/t with GM prices gaining A$9/t to $760/t in most port zones. The spread between the two has closed $30/t over the last week moving from around $90/t last week closer to $60/t yesterday. There were modest gains for new season wheat yesterday to be bid around $370/t, while nearby prices remained largely unchanged.

It was a similar story in the east, with new season canola bid around $750/t and the GM bid increasing +$5/t to $715/t. New crop and nearby barley were unchanged at around $330/t. Nearby wheat was down slightly to be bid around $340/t with new season at $360/t. 

Yesterday brought some unseasonably warm weather for parts of the southern cropping region with temperatures between 21-24°C for large parts of the WA, SA and NW Vic. Some patchy rain across WA brought 1-10mm for a large section of the cropping belt, with isolated areas of the Midlands, Lower Great Southern and Southeastern seeing 15-25mm.