Grain Highlights 18.03.2022

Feed mills in Asia are switching to low quality rice for their production.

- Over the week starting on February 23, 2022, the export tax on Russian wheat will be 86.4 USD/ton (86.3 a week earlier). The export tax on will be barley 79.6 USD/ton (77.4) and 53.2 USD/ton on corn (54.1).

- Ukraine is looking for an opportunity to export grain through Romanian ports. A local analyst estimates the loss of production in 2022 at 20 - 25% in the case of fast deliveries of fuel and fertilizers for the spring campaign.

- According to the forecast of the Association of Cooperatives in Germany, wheat production in the country will increase by 5.8% compared to 2021 to 22.6 million tons in 2022. The winter rapeseed production will be 3.9 million tons (+11.6%), winter barley production is estimated at 8.85 million tons (-0.4%), spring barley production is projected at 1.72 million tons (+13.3%) and corn production will be 4.13 million tons (-7%).

- According to EIA data, in the week ending March 11, 2022, US ethanol stocks increased by 674,000 barrels to 25.95 million barrels, the highest level since the end of April 2020. Daily ethanol production during the week reached 1.03 million barrels (-2000 per day compared to the previous week).

- Last week, China bought 200,000 tons of corn from the United States, which is the highest level since December. After the suspension of corn exports from Ukraine, the United States is the only alternative for supplies. Demand for corn from the United States, Brazil and Argentina has risen sharply in the past week, but purchases have fallen.

- Feed mills in Asia are switching to low quality rice for their production. Usually rice is more expensive than wheat, but now wheat is the more expensive crop. Rice also replaces corn in feed.

- Turkey has purchased 270,000 tons of milling wheat with protein 11.5 - 12.5% ​​at an average price of 453.23 USD/ton C&F and delivery within 25.03 -22.04.2022.