CBOT reports attached

Selected Reuters news reports below

Argentina to increase export taxes on agriculture commodities. Its bullish but a lower trade in wheat limiting gains in corn, as of 8:30 pm CT, and soybeans are lower in Nov and Jan.

 

UPDATE 1-Argentine farmers seen delaying wheat sales under new tax regime – Reuters News

03-Sep-2018 03:15:58 PM

Adds quotes from farm group leaders, details of tax increase plan

By Hugh Bronstein and Maximilian Heath

BUENOS AIRES, Sept 3 (Reuters) – Argentine farmers may delay wheat sales and plant less corn this year after the government announced a roughly 10 percent export tax on the grains on Monday as part of an austerity program designed to halt a run on the peso currency, growers and consultants said.

The measures announced by President Mauricio Macri’s government include a tax of four pesos per dollar on wheat and corn shipments. That is currently equivalent to about 10 percent but it would decline if the peso keeps falling.

While this season’s wheat crop has already been planted, Argentina farmers may weigh the tax implications as they prepare to plant corn next month.

"This will make farmers sit down and recalculate how much corn they’re going to plant," said David Hughes, a grower and president of the Argentrigo wheat industry chamber. He added that wheat sales could also be delayed as farmers watch the value of the peso.

"Farmers will be playing the exchange rate," he said.

The new farm tax system is included in a package of measures Argentina is proposing to the International Monetary Fund to unlock early cash disbursements of a $50 billion standby financial agreement at negotiated earlier this year.

The tax revenues are needed to help reduce the fiscal deficit and calm market jitters about Argentina’s ability to pay its debts next year, much of which is in U.S. dollars.

Investors’ concerns sparked a 16 percent loss in the value of the Argentine peso against the U.S. dollar last week alone, bringing to almost 50 percent its losses so far this year. (Full Story)

Argentina, with its vast Pampas grains belt, is the world’s No. 3 exporter of corn and raw soybeans. It is also the world’s top exporter of soymeal livestock feed and soyoil, used in making biofuels, as well as a wheat supplier, mainly to neighboring Brazil.

As much as farmers may want to hang onto their wheat crops to take advantage of the swooning peso, they will need to sell at least some of their stocks to buy seeds and inputs for planting of the country’s main cash crop, soybeans, in October.

A 25.5 percent export tax that had been put on soybeans was dropped on Monday to 18 percent, as has the 23 percent tax placed on international soyoil and soymeal shipments.

But on top of that 18 percent tax, the three products will now be slapped with an additional levy of 4 pesos per export dollar, bringing the effective tax hike on soybeans and byproducts to 3 percentage points.

"Soy export taxes will be a little higher. The impact on wheat and corn will be quite important," said Gustavo Lopez, head of the local Agritrend consultancy. "We will probably see an effect on corn plantings."

 

‘NOT GOOD NEWS’

Growers are a major source of political support for Macri, who won office in late 2015 on a platform of ending the currency and trade controls favored by his populist predecessor Cristina Fernandez, who feuded openly with the farm sector for years.

Macri defended the tax increases, which are due to end in 2020, as an emergency measure. He said exporters who had benefited from the slump in the peso needed to contribute more to the country’s deficit-cutting program.

It is the primary fiscal deficit, projected at 2.6 percent of gross domestic product this year, that sparked questions about Argentina’s ability to honor its 2019 debt obligations

Farm groups panned the tax increases as an added expense for growers already struggling with high financing costs and the effects of a drought that hobbled this year’s soy harvest.

Farmers say their costs have risen this year as many agricultural inputs like pesticides are priced in dollars.

"This is a hard blow to farmers," said Dardo Chiesa, president of growers’ umbrella group CRA. "They did not consult with us at all. It was presented as a done deal."

The FAA chamber representing smaller farms said the new measures will not help growers with problems like high inflation, clocked in July at over 31 percent, and high borrowing costs after the central bank hiked its main interest rate to 60 percent last week.

Growers, like all Argentines, are also contending with higher energy bills since the government cut public utility subsidies as part of its deficit reduction program.

"When the president talks about the ‘most vulnerable’ members of society, he needs to understand this includes small- and medium-scale farmers," Omar Príncipe, president of the FAA said in a statement.

 

(Reporting by Hugh Bronstein
Editing by James Dalgleish and Cynthia Osterman)

(( hugh.bronstein@thomsonreuters.com ; 5411 4318 0655; Reuters Messaging: hugh.bronstein.thomsonreuters.com@reuters.net ))

 

(c) Copyright Thomson Reuters 2018. Click For Restrictions – agency.reuters.com/en/copyright.html

 

Keywords: ARGENTINA-ECONOMY/GRAINS (UPDATE 1)

 

 

GRAINS-Wheat falls 1 pct as Russia rules out restricting exports – Reuters News

03-Sep-2018 07:39:40 PM

SYDNEY, Sept 4 (Reuters) – U.S. wheat futures fell 1 percent on Tuesday after Russia’s Agriculture Ministry said it would not restrict grains exports, easing fears over global supplies.

FUNDAMENTALS

* The most active wheat futures on the Chicago Board Of Trade Wv1 were down 0.9 percent at $5.40-3/4 a bushel by 0019 GMT, having closed up 2 percent on Friday. U.S. markets were closed on Monday.

* The most active soybean futures Sv1 edged up 0.2 percent to $8.44-3/4 a bushel, having firmed 1.4 percent on Friday.

* The most active corn futures Cv1 were up 0.7 percent at $3.67-1/2 a bushel, just off the session high of $3.68 a bushel, the highest since Aug. 23. Corn gained 2.4 percent in the previous session.

* Russia’s Agriculture Ministry does not see a need to impose an export duty on grains or to curb grain exports in any other way, it said in a statement after a meeting with exporters on Monday. (Full Story)

* Argentine farmers may delay wheat sales and plant less corn this year after the government announced a roughly 10 percent export tax on the grains on Monday as part of an austerity program designed to halt a run on the peso currency, growers and consultants said. (Full Story)

* China reported a new case of African swine fever in Xuancheng in Anhui province on Monday, the second in the city in as many days, raising the risk for farmers as the disease spreads rapidly in the world’s top pork producer. (Full Story)

MARKET NEWS

* The dollar consolidated near a one-week high against a basket of currencies on Monday as tensions around global trade and a continued selloff in emerging markets fuelled demand for the greenback. USD/

* Oil prices rose on Monday, supported by concerns that falling Iranian output will tighten markets once U.S. sanctions bite from November, but gains were limited by higher supply from OPEC and the United States. O/R

Grains prices at 0019 GMT
Contract	Last	Change		Pct chg	Two-day chg	MA 30
CBOT wheat	540.75	-4.75		-0.87%	+1.07%	558.23
CBOT corn	367.50	2.50		+0.68%	+3.09%	373.31
CBOT soy	844.75	1.25		+0.15%	+1.59%	876.68
CBOT rice	10.83	$0.00		+0.00%	-0.32%	$11.10
WTI crude	70.01	$0.21		+0.30%	-0.34%	$68.18
Currencies
USD/AUD	0.7197	-0.001		-0.19%	+0.10%

 

Most active contracts

Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight

RSI 14, exponential

 

(Reporting by Colin Packham; editing by Richard Pullin)

 

·         03-Sep-2018 01:15:24 PM – BRAZIL EXPORTS 2.26 MLN 60-KG BAGS OF COFFEE IN AUGUST VS 1.24 MLN BAGS IN JULY AND 2.38 MLN BAGS YR AGO – TRADE MINISTRY

·         03-Sep-2018 01:15:24 PM – BRAZIL EXPORTS 8.13 MLN T SOYBEANS IN AUGUST VS 10.20 MLN T IN JULY AND 5.95 MLN T YR AGO – TRADE MINISTRY

·         03-Sep-2018 01:15:24 PM – BRAZIL EXPORTS 1.46 MLN T SOY MEAL IN AUGUST VS 1.73 MLN T IN JULY AND 1.23 MLN T YR AGO – TRADE MINISTRY

·         03-Sep-2018 01:15:24 PM – BRAZIL EXPORTS 209,268 T SOY OIL IN AUGUST VS 210,904 T IN JULY AND 145,914 T YR AGO – TRADE MINISTRY

·         03-Sep-2018 01:15:24 PM – BRAZIL EXPORTS 1.44 MLN T RAW SUGAR IN AUGUST VS 1.71 MLN T IN JULY AND 2.16 MLN T YR AGO – TRADE MINISTRY

·         03-Sep-2018 01:15:24 PM – BRAZIL EXPORTS 1,208,229 T PULP IN AUGUST VS 1,093,663 T IN JULY AND 1,179,666 T YR AGO – TRADE MINISTRY

·         03-Sep-2018 01:15:24 PM – BRAZIL EXPORTS 54,168 T PORK IN AUGUST VS 57,065 T IN JULY AND 58,899 T YR AGO – TRADE MINISTRY

·         03-Sep-2018 01:15:24 PM – BRAZIL EXPORTS 144,423 T BEEF IN AUGUST VS 130,860 T IN JULY AND 122,789 T YR AGO – TRADE MINISTRY

·         03-Sep-2018 01:15:24 PM – BRAZIL EXPORTS 368,476 T POULTRY IN AUGUST VS 438,296 T IN JULY AND 382,465 T YR AGO – TRADE MINISTRY

·         03-Sep-2018 01:15:24 PM – BRAZIL EXPORTS 35.62 MLN T IRON ORE IN AUGUST VS 36.00 MLN T IN JULY AND 34.13 MLN T YR AGO – TRADE MINISTRY

·         03-Sep-2018 01:15:24 PM – BRAZIL EXPORTS 4.35 MLN T CRUDE OIL IN AUGUST VS 8.10 MLN T IN JULY AND 4.58 MLN T YR AGO – TRADE MINISTRY

·         03-Sep-2018 01:15:24 PM – BRAZIL EXPORTS 2,898,732 T CORN IN AUGUST VS 1,170,123 T IN JULY AND 5,257,068 T YR AGO – TRADE MINISTRY

·         03-Sep-2018 01:15:24 PM – BRAZIL EXPORTS 262.47 MLN LITERS ETHANOL IN AUGUST VS 180.69 MLN LTR IN JULY AND 176.84 MLN LTR YR AGO – TRADE MINISTRY

See Brazil’s commodities exports for August – Reuters News

03-Sep-2018 01:15:25 PM

SAO PAULO, 3 Sept (Reuters) – Brazil’s Trade Ministry published on Monday export data for the month of August. See the table below for the main commodities exports:

 

 Commodity                      August 2018           July 2018             August 2017

 COFFEE(60 KG BAG)              2,255,585             1,242,462             2,375,452

 CRUDE OIL (TNS)                4,354,096             8,098,498             4,576,543

 ETHANOL (LTR)                  262,470,278           180,685,275           176,840,420

 SOYBEANS (TNS)                 8,127,228             10,195,879            5,952,411

 IRON ORE                       35,621,273            35,999,441            34,125,980

 FROZEN ORANGE JUICE (TNS)      29,197                22,431                38,014

 NON-FROZEN ORANGE JUICE (TNS)  112,279               179,491               175,607

 SUGAR RAW (TNS)                1,444,137             1,709,222             2,160,409

 

(Reporting by Sao Paulo Newsroom; +55 11 5644-7500)

 

 

·         03-Sep-2018 12:39:42 PM – BRAZIL SOYBEAN AREA EXPECTED TO GROW BY 2 PCT TO 35.86 MLN HA IN 2018/2019 CROP CYCLE – INTL FCSTONE

·         03-Sep-2018 12:40:46 PM – BRAZIL SOYBEAN FARMERS EXPECTED TO COLLECT 119.18 MLN TONNES IN 2018/2019 CROP CYCLE, UP 0.2 PCT FROM PREVIOUS YEAR

·         03-Sep-2018 12:42:09 PM – BRAZIL’S FIRST-CORN AREA SEEN GROWING 2.5 PCT TO 5.2 MLN HA IN 2018/2019 CYCLE – INTL FCSTONE

·         03-Sep-2018 12:44:00 PM – BRAZIL FIRST-CORN CROP ESTIMATED AT 27.22 MLN TNS IN 2018/2019 CYCLE COMPARED TO 26.82 MLN TNS IN PREVIOUS YEAR

·         03-Sep-2018 12:45:02 PM – BRAZIL’S SOYBEAN EXPORTS SEEN AT 71 MLN TNS IN THE 2018/2019 CYCLE COMPARED WITH 74 MLN TNS IN 2017/2018

Brazil soybean area seen growing 2 pct in 2018/2019 – Reuters News

03-Sep-2018 12:57:47 PM

SAO PAULO, Sept 3 (Reuters) –

• Brazil’s soybean area is expected to grow by 2 percent to 35.86 million ha in 2018/2019 crop cycle – INTL FCStone

• Brazil soybean farmers expected to collect 119.18 million tonnes in 2018/2019 crop cycle, up 0.2 percent from previous year – INTL FCStone

• Brazil’s first-corn area seen growing 2.5 percent to 5.2 million ha in 2018/2019 cycle – INTL FCStone

• Brazil first-corn crop estimated at 27.22 million tns in 2018/2019 cycle compared to 26.82 million tns in previous year – INTL FCStone

• Brazil’s soybean exports seen at 71 million tns in the 2018/2019 cycle compared with 74 million tns in 2017/2018 – INTL FCStone

 

(Reporting by Ana Mano
Editing by Alistair Bell)

(( ana.mano@thomsonreuters.com ; Tel: +55-11-5644-7704; Mob: +55-119-4470-4529; Reuters Messaging: ana.mano.thomsonreuters.com@reuters.net ))

 

(c) Copyright Thomson Reuters 2018. Click For Restrictions – agency.reuters.com/en/copyright.html

 

Keywords: BRAZIL-GRAIN/

 

·         03-Sep-2018 08:38:06 AM – RUSSIA’S AGRICULTURE MINISTRY ASKED EXPORTERS DURING MEETING ON MONDAY IF THEY PLANNED TO EXPORT GRAIN FROM SIBERIA – TWO TRADERS

·         03-Sep-2018 08:38:06 AM – RUSSIA’S AGRICULTURE MINISTRY IS STILL WAITING FOR PERMISSION TO SELL 1.5 MLN T OF GRAIN FROM STATE STOCKPILE – TWO TRADERS AFTER MEETING

·         03-Sep-2018 08:38:06 AM – RUSSIA’S AGRICULTURE MINISTRY MEETING WITH GRAIN EXPORTERS WAS "CALM" – TWO TRADERS

Russia farm ministry, exporters discuss Siberia, state stockpile – sources -Reuters News

03-Sep-2018 08:52:21 AM

MOSCOW, Sept 3 (Reuters) – Russia’s Agriculture Ministry discussed Siberia’s potential for grain exports in a meeting with exporters on Monday and said it was still waiting for permission to sell 1.5 million tonnes of grain from the state stockpile, two traders said.

 

(Reporting by Polina Devitt; Editing by Dale Hudson)

 

·         03-Sep-2018 05:57:40 AM – CHINA GOVT OFFICIAL SAYS CHINA HAS CULLED 2,310 HOGS IN ANHUI PROVINCE AS OF SEPT 2 IN RESPONSE TO AFRICAN SWINE FEVER -STATE RADIO

China has culled 2,310 hogs in Anhui after swine fever outbreak -state media –Reuters News

03-Sep-2018 06:09:58 AM

BEIJING, Sept 3 (Reuters) – China had culled 2,310 hogs in east China’s Anhui province as of Sept 2 in response to African swine fever, an agricultural ministry official told state radio on Monday.

China reported a new case of African swine fever in Xuancheng in Anhui province on Monday, the second in the city in as many days, raising the risk for farmers as the disease spreads rapidly in the world’s top pork producer. (Full Story)

 

 

(Reporting by Beijing monitoring team
Editing by David Goodman)

 

Malaysia’s August palm oil exports rose 0.4 pct -SGS – Reuters News

03-Sep-2018 04:51:43 AM

SINGAPORE, Sep 3 (Reuters) – Exports of Malaysian palm oil products for August rose 0.4 percent to 1,054,169 tonnes from 1,049,970 tonnes shipped during July, cargo surveyor Societe Generale de Surveillance said on Monday.

 

China sells 98,787 T of 2012 wheat at auction of state reserves – trade centre –Reuters News

03-Sep-2018 03:15:53 AM

BEIJING, Sept 3 (Reuters) –

·         China sells 98,787 tonnes of 2012 wheat at auction of state reserves at an average price of 2,105 yuan ($308.69) per tonne, the National Grain Trade Centre said on Monday.

·         Sale represents 94.41 percent of total wheat available at the auction.

 

($1 = 6.8191 Chinese yuan)

 

Strategie Grains cuts EU rapeseed outlook for 7th consecutive month –Reuters News

03-Sep-2018 02:00:00 AM

PARIS, Sept 3 (Reuters) – Strategie Grains has lowered its forecast for the 2018 European Union rapeseed harvest for a seventh consecutive month mainly due to a downward revision in Germany.

The France-based consultancy in its monthly oilseed report said it expected EU rapeseed production of 19.62 million tonnes, down from an estimate of 19.95 million a month ago and 11.5 percent smaller than the 2017 crop.

Crops in Germany, the European Union’s second largest rapeseed producer after France, suffered from an excess of water in the early development stages and were later hit by one of the country’s worst droughts.

Germany’s 2018 rapeseed yield is expected to be the lowest in the past 15 years, Strategie Grains said.

Other forecasters have also lowered projections for the EU rapeseed harvest after a dry, hot end to spring and summer strained crops weakened earlier by damp, chilly conditions. (Full Story)

Rapeseed is mainly used to produce cooking oil, biodiesel and animal feed.

The harvest is now over in most EU countries, setting a record for early completion, Strategie Grains said.

	PRODUCTION				Pct 2018/17
	2016-17	2017-18	2018-19	2018-19
			(prior)	(new)
Rapeseed	20.49	22.17	19.95	19.62	-11.5
Sunseed	8.50	9.75	8.91	9.33	-4.4
Soybeans	2.50	2.59	2.71	2.69	3.8
	AREA
	2016-17	2017-18	2018-19	2018-19
			(prior)	(new)
Rapeseed	6.52	6.71	6.79	6.78	1.1
Sunseed	4.10	4.33	4.17	4.18	-3.3
Soybeans	0.85	0.97	0.96	0.97	0.1
	YIELDS
	2016-17	2017-18	2018-19	2018-19
			(prior)	(new)
Rapeseed	3.14	3.30	2.94	2.89	-12.4
Sunseed	2.07	2.25	2.14	2.23	-1.1
Soybeans	2.92	2.68	2.81	2.78	3.6

 

(Reporting by Sybille de La Hamaide; editing by Jason Neely)

 

 

 

 

 

Terry Reilly

Senior Commodity Analyst – Grain and Oilseeds

Futures International │190 S LaSalle St., Suite 410│Chicago, IL  60603

W: 312.604.1366

treilly@futures-int.com

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