Wheat fell for a third straight day as demand for U.S. grain slid, eroded by rising global supplies. From June 1 to Nov. 12, overseas buyers committed to purchase 14.3 million metric tons of U.S. wheat, 29 percent less than a year earlier, Department of Agriculture data show. The dollar gained as much as 0.8 percent against a basket of six major currencies, making U.S. exports less appealing.
Soybeans rose to a three-month high on signs that demand is increasing in China, the world’s biggest importer. Export sales by the U.S., the world’s largest grower and shipper, rose 6.1 percent to 1.35 million metric tons in the week ended Nov. 12, including more than 724,700 tons to China, U.S. Department of Agriculture data show. Sales in the first two weeks of November were twice the October weekly average.
Corn prices slipped, paring this week’s gain, as a rebound by the dollar curbed investor demand for commodities to hedge against inflation.
Ukraine harvested 47.09 million metric tons of grain to Nov. 19 on 15.22 million hectares, or just over 98% of the total area to be harvested, with an average yield of 3.09 tons a hectare, the agriculture ministry said Friday.
According to prognostic data from regions, as of November 12, grain sowings in Ukraine for the harvest-2010 are expected at the level of 15.9 mln ha, which corresponds to the indices of the current year, declared Yuri Melnik, the Minister of Agrarian Policy. Winter grain sowings will occupy 8.1 mln ha, spring – 7.8 mln ha.
“By and large, the situation concerning fuel supply for agrarians has been at least as good in 2009 as it was in 2008”, commented Yevgeniy Orel, Deputy Director General, Ukrainian Agrarian Confederation (UAC). It has been possible to avoid critical disruptions with the fuel supply. In the current year, according to the estimates of Ministry for Agrarian Policy, the estimated technological demand (ETD) for diesel fuel in the agrarian sector amounted to 1.5 million MT, gasoline 0.41 million MT. Of these amounts, the autumn field works required 530,000 and 139,000 MT respectively.
According to the State Committee of Statistics of Ukraine, as of November 2, 2009, agricultural economies of all varieties harvested 44.26 mln tonnes of grains and leguminous plants (including maize) in bunker weight, a decrease of 11.9% compared to the same date of 2008.
U.S. producers are expected to reduce plantings of the variety of wheat used to make pastries and snack foods by 18% to 20% from last year due to weather delays and weak cash prices. Last year, producers planted about 8.3 million acres of the variety, soft red winter wheat, which is grown in the central third of the country. Total winter wheat seedings last year were about 43.3 million acres. This year, wet weather that has slowed the U.S. corn and soy harvests has delayed SRW wheat planting. Many producers seed SRW wheat after soybeans in the Midwest and South but could not plant wheat until the soybeans were harvested and the ground dried up.
Grain stocks in Ukraine on Nov. 1 totaled 22.4 million metric tons, 9% less than on Nov. 1 2008, the state statistics committee reported Tuesday. The stocks included 11.1 million tons of wheat, 5.3 million tons of barley, 3.6 million tons of corn and 800,000 tons of rye.
The government of Ukraine is once again holding back the payment of huge sums of value-added tax refunds, for long periods of time, owed to grain exporters and other private companies. Ukraine is reported by many private companies to have the worst track record of any country in the world regarding vat tax refund payments, according to the U.S.-Ukraine Business Council (USUBC).