The grain market has been interesting over the past week and this week due to a strong increase in prices. The price of soybean meal rose by 11 usd/mt, corn by 7 usd/mt, and soybean seeds by as much as 12 usd/st. This price rally is a result of the USDA WASDE report, which was sufficiently encouraging and reflected on the American market.
Additionally, the crop report released at the beginning of the week is not overly positive, which has also affected the continued rise in grain prices. According to some reports, corn crops are larger than the USDA predicted, while on the other hand, significantly reduced soybean crops are expected. The final report will be published by the USDA, and those will be the final figures.
Weather conditions are expected for August, with little rain and long dry periods.
The EU has set an import duty of 5.48 €/mt on corn, rye, and sugar cane of any origin.
At the same time, freight prices are rising in North and South America. Panamax and Supramax have increased prices due to high demand for bulk grain transportation from across the continent.
In China, port congestion is causing supply bottlenecks, and the entire process has slowed down.
In Peru, there are no other reasons for concern besides Covid-19. Fishmeal stocks are low, around 10,000 mt, and contracts for the next season are around 50,000 mt. China is currently consuming below-average amounts of fishmeal, the lowest in the past 10 years. At the same time, fishmeal stocks in China are at their lowest levels in the last 5 years, but new quantities of fishmeal are on their way to China, so there is no reason for concern.
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