• Bloomberg reported that firefighters are rushing to extinguish forest and land fires across parts of Indonesia. 8 out of 44 wildfire incidents in south Sumatra have been successfully extinguished, according to the Ministry of Environment and Forestry. Firefighters are also aiming to finish extinguishing forest and land fires in Central Kalimantan. There are 147 hot spots identified as medium to high severity in the province. Also, the government is implementing cloud seeding to induce rains that can keep the peat wet and fill reservoirs needed for water bombing.

• Bloomberg cited the Rosario Board of Trade as saying that the latest round of a programme that gives Argentinian soybean farmers a weaker forex rate has spurred 4.5mil tonnes of trades to exporters through 28 September. Out of the 4.5mil tonnes, new soybean sales accounted for 3.1mil. Farmers have completed transactions on delayed price contracts for another 1.5mil tonnes. Crop exports in September are estimated to provide US$1.7bil to the central bank.

• Reuters quoted a Ukrainian official as saying that 5 more ships are on their way to Ukrainian sea ports using a new corridor opened to resume predominantly agricultural exports, an alternative arrangement to the Black Sea grains deal that has been blocked by Russia. The bulk carriers will be exporting 120,000 tonnes of Ukrainian grains to Africa and Europe. Previously, 3 bulk carriers left Ukrainian ports using the “temporary corridor established by the Ukrainian Navy” and carrying 127,000 tonnes of agricultural products and iron ore.

• Reuters also cited the Buenos Aires grains exchange as saying that the country’s wheat yields during the 2023E/2024F season in the western farmland could continue to fall if rains do not arrive quickly. Currently, the report forecasts that farms covering western Buenos Aires and eastern La Pampa/Cordoba provinces will receive rain between 10mm and 25mm over the next 7 days. The lack of rain is also causing delays for the planting of 2023E/2024F corn crop with production estimated at 55mil tonnes.

• According to Reuters also, a large domestic corn crop and surging imports from Brazil are set to flood the Chinese market over the coming weeks, reducing demand for other grains and pressuring global corn prices, which are near 3-year lows. Brazil has begun its harvest, with output likely to surpass last year even after typhoons in the summer have damaged crops in some northern provinces. An industry expert expects China to import 20mil tonnes of corn in 2023E/2024F with a third coming from Brazil compared with 18mil tonnes in the previous season.

Source: AmInvest Research - 9 Oct 2023