Saturday, December 02, 2023

Weekly Report -- December 02, 2023

 

 

  Hammersmith Reports

 

3 Avenue Marie Gasquet, St Remy de Provence, 13210 France

Phone: +33.6.8068.4564   

Email:   wbacon@hammersmith.biz   

WWW:  hammersmithltd.blogspot.com    

 

 

WEEKLY USA GRAIN AND PROTEIN REPORT December 02, 2023

 

US wheat prices were up this week as soymeal tumbled lower but both corn and soybeans showed slight change on the week.

 

Both soybeans and soymeal had down days on Friday with soybeans down by about USD 6 m/t on the day and soymeal down by USD 15 m/t on the day. Soybeans did finish the week almost unchanged in price while soymeal dropped by as much as USD 30 m/t for spot positions. Trade experts say that any weakness in soybeans/soymeal is due to the rainfall in Brazil and the hopes for improved bean yields.

 

Corn processing for ethanol was at a record high according to the latest monthly USDA Crushing report which probably kept corn prices from moving lower. Corn usage for ethanol production is up by 2.9% on the year. Corn futures prices this week broke the bearish trend according to experts, but other experts feel that prices will be bearish once again in the near future.

 

The US Grains Council’s Corn Crop Quality Report was issued this week and a copy is available at the following:  https://grains.org/corn_report/corn-harvest-quality-report-2023-2024

 

Wheat prices had hit the lows on Monday then charged higher for the rest of the week with US winter wheat prices moving as much as USD 15 m/t higher. Trade experts feel that wheat prices could continue higher next week as there is more short covering expected in the futures market. Trade reports say the price rally could be due to possible wheat export restrictions by Russia or due to Chinese wheat buying or perhaps just a switch from a bear market to a bull market.

 

The US Wheat Associates Crop Quality report was issued in October and is available for download at the following: https://www.uswheat.org/crop-quality

 

  

 

Estimated Bulk Grain Freight in USD per m/t, basis heavy grains.

 

US Gulf to Europe: Panamax

$32.00

Up $3.00

 

US Gulf to Spain: Panamax m/t

$32.00

Up $3.00

 

US Gulf Israel: Panamax m/t

$40.00

Up $4.00

 

US Gulf to Egypt: Panamax

$40.00

Up $4.00

 

US Gulf Turkey: Panamax m/t

$41.00

Up $4.00

 

US Gulf Morocco: Handi

$41.00

Up $4.00

 

US Gulf Algeria/Tunisia: Handi

$42.00

Up $4.00

 

US Gulf Nigeria: 30,000 m/t

$45.00

Up $3.00

 

US Gulf other Med: Handi

$43.00

Up $4.00

 

US Gulf South Africa: Handi

$41.00

Steady

 

US Gulf to Philippines: Panamax

$52.00

Steady

 

US Gulf Japan: Panamax

$63.00

Up $6.00

 

US Gulf China: Panamax

$62.00

Up $6.00

 

US PNW South Africa – 40,000 m/t

$65.00

Steady

 

US PNW Philippines: Panamax

$39.00

Steady

 

US PNW Japan: Panamax

$33.00

Up $3.00

 

US PNW China: Panamax

$32.00

Up $3.00

 

US East Coast Nigeria: Handisize

$45.00

Steady

 

US Lakes – Europe – 30,000 m/t

$60.00

Steady

 

US Lakes – Morocco – 30,000 m/t

$69.00

Steady

 

 

 

 

 

France/Germany to Algeria: Handi

$32.00

Up $2.00

 

France/Germany to China: Panamax

$82.00

Steady

 

France/Germany to Egypt: Panamax

$26.00

Up $2.00

 

France/Germany to Iran: Panamax

$45.00

Steady

 

France/Germany to Jordan

$40.00

Up $3.00

 

France/Germany to Morocco: Handi

$31.00

Up $2.00

 

France/Germany to Saudi Arabia: Panamax

$65.00

Up $3.00

 

France/Germany to Turkey: Handi

$35.00

Up $2.00

 

France/Germany to Yemen: Handi

$66.00

Up $2.00

 

 

 

 

 

Argentina to Algeria: Handi

$61.00

Up $1.00

 

Argentina to China: Panamax

$53.00

Up $4.00

 

Argentina to Japan: Panamax

$54.00

Up $4.00

 

Argentina to Egypt: Panamax

$55.00

Up $2.00

 

Argentina to Europe: Panamax

$39.00

Steady

 

Argentina to Morocco: Handi

$60.00

Up $1.00

 

Argentina to Libya: Handi

$62.00

Up $1.00

 

Argentina to Jordan: Panamax

$55.00

Steady

 

Argentina to Saudi Arabia: Panamax

$65.00

Steady

 

Argentina to Iran: Panamax

$61.00

Steady

 

Argentina to Indonesia: Panamax

$59.00

Steady

 

Argentina to South Africa: Panamax

$35.00

Steady

 

Argentina to Kenya: Handi

$57.00

Steady

 

Argentina to Spain: Panamax

$39.00

Steady

 

Argentina to Tunisia: Handi

$61.00

Up $1.00

 

 

 

 

 

Brazil to Algeria/Tunisia: Handi

$51.00

Up $1.00

 

Brazil to China: Panamax

$45.00

Up $1.00

 

Brazil to Japan: Panamax

$46.00

Up $1.00

 

Brazil to South Korea: Panamax

$48.00

Steady

 

Brazil to Europe: Panamax

$41.00

Steady

 

Brazil to Morocco: Handi

$50.00

Up $1.00

 

Brazil to Iran: Panamax

$61.00

Steady

 

Brazil to Saudi Arabia 30/40,000 m/t

$66.00

Steady

 

Brazil to Spain: Panamax

$41.00

Steady

 

Brazil to Turkey/Egypt: Panamax

$60.00

Steady

 

 

 

 

 

Australia to Saudi: Panamax

$52.00

Steady

 

Australia to Europe: Panamax

$61.00

Steady

 

 

 

 

 

 

 

Black Sea freight

 

 

 

 

Black Sea to China: Panamax

$57 Russia

Ukraine $57

 

Black Sea to Indonesia: Panamax

$60 Russia

Ukraine $77

 

Black Sea to Egypt: 40/50,000

$22 Russia

Ukraine $41

 

Black Sea to Egypt: 30,000

$20 Russia

Ukraine $42

 

Black Sea to Iran: Panamax

$48 Russia

Ukraine $61

 

Black Sea to Europe: Panamax

$29 Russia

Ukraine $38

 

Black Sea to Morocco – Handi

$29 Russia

Ukraine $48

 

Black Sea to Tunisia/Algeria – Handi

$28 Russia

Ukraine $47

 

Black Sea to Jordan: Panamax

$37 Russia

Ukraine $53

 

Black Sea to Libya – Handi

$29 Russia

Ukraine $48

 

Black Sea to Saudi: Panamax

$43 Russia

Ukraine $71

 

Black Sea to Turkey – Handi

$16 Russia

Ukraine $40

 

 

 

 

 

Black Sea to South Africa – Handi

$57.00

 

 

 

 

 

 

Russia to Turkey (Izmir)– coaster 5,000 m/t

$26.00

Down $1.00

 

Russia to Egypt – coaster 5,000 m/t

$62.00

Steady

 

Ukraine to Turkey – coaster 5,000 m/t

$33.00

Steady

 

Ukraine to Egypt – coaster 5,000 m/t

$79.00

Steady

 

 

 

 

 

 

 

 

 

Baltic Dry Index

3192

Up 1090

 

Baltic Capesize Index

6237

Up 2852

 

Baltic Panamax Index

2341

Up 277

 

Baltic Supramax Index

1489

Up 210

 

Baltic Handisize Index

773

Up 103

 

 

 

 

 

Global Container Index - Freightos

1156

Up 23

 

   

 

 

 

 

 

All shipments in bulk grain vessels unless stated otherwise.

(NOLA is New Orleans, Louisiana, USA.)

FOB port or location specified. Prices in US$, in metric tons:

 

ALL PRICES ARE FOR January 2024/March 2024

 

   Wheat, USA Soft Red Winter, US Gulf

USD 258<<262 Apr   

 

   Wheat, USA Hard Red Winter 11 protein, US Gulf

USD 291<<293 Apr      

 

   Wheat, Ukraine 11.5 pro, 30,000+ m/t

USD 200<<205 Apr

 

   Wheat, Russia 12.5 pro, 30,000+ m/t

USD 239<<243 Apr 

 

   Wheat, Romania 12.5 pro

USD 254<<260 Apr   

 

   Wheat, Superior, France, Rouen

USD 244<<255 Apr      

 

   Wheat, milling, 12.0%, Argentina, Upriver

 USD 230<<260 Apr     

 

   Wheat, feed, Black Sea

USD 230/235      

 

 

 

 

   Barley, France, Rouen port

USD 220/225

 

   Barley, feed, Argentina, upriver

USD 225/230

 

   Barley, feed, Black Sea, 30,000+

USD 180/185

 

   Barley, feed, Australia

USD 262/265

 

 

 

 

   Corn, 2YC FOB NOLA USA

USD 210<<220 Apr 

 

   Corn, 3YC FOB USA Pacific northwest

 USD 230<<240 Apr  

 

   Corn, FOB Argentina port, upriver

USD 220<<210 Apr  

 

   Corn, FOB Brazil port

USD 230>>210 Apr 

 

   Corn, FOB France – Atlantic

USD 222/225

 

   Corn, FOB Romania

USD 219/222

 

   Corn, FOB Russia

USD 205/210

 

   Corn, FOB Ukraine, 30,000+ m/t

USD 180/185

 

   Sorghum, FOB Argentina port

USD 280/285

 

   Sorghum, FOB Texas

USD 265/270

 

 

 

 

   Soymeal, 48% protein, FOB NOLA

USD 530>>485 Apr  

 

   Soymeal, 48% protein, USA, Rotterdam

USD 560>>515 Apr  

 

   Soymeal, 47% pro, FOB Argentina

USD 500>>430 Apr     

 

   Soymeal, 48% protein, Brazil, Rotterdam – spot

USD 565/570

 

   Soymeal, 48% protein, FOB Brazil

 USD 485>>435 Apr 

 

 

 

 

   Soybeans, FOB NOLA

USD 510<<520 Apr

 

   Soybeans, Argentina, FOB

USD 520>>480 Apr

 

   Soybeans, Brazil, FOB

USD 525>>480 Apr

 

   Soybeans, Black Sea

No prices

 

 

 

 

   Corn Gluten Meal, USA FOB NOLA

USD 685/690

 

   Corn Gluten Feed, USA FOB NOLA

USD 235/240

 

   DDGS corn, 35 profat, USA FOB NOLA

USD 285>>275 Apr

 

 

 

 

 

 

 

 

USA DDGS prices drifted a little lower this week but only by a couple of dollars. Experts say that the DDGS supply in the US is getting a little tight due to lower ethanol production. Prices into 2024 for DDGS are about USD 10 m/t lower than spot prices.

 

Both corn gluten meal and corn gluten feed prices moved lower on the week. The drop in CGM prices is due to the weakness seen in soymeal this week. Soymeal prices were down as much as USD 30 m/t which certainly moved CGM lower.

 

Export buyers of CGM are hoping that CGM prices continue to dip as recent very high prices had kept them out of the market.

 

According to the USDA Crushing report, DDGS production is up by 2.9% on the year while corn gluten meal production is up by 0.6% and corn gluten feed down by 1.0%.

 

 

SECTION 2 --- FISHMEAL COMMENTS AND PRICES: PERUVIAN “INDICATION” FISHMEAL PRICES:

 

The catch in Peru was lower this week due mainly to mini bans. However, the total catch did reach 973,000 MT leaving 709,000 m/t on the quota.

 

Still no new fishing quota set for the South of Peru --- no one expects one now as the Southern fishing season normally ends on December 31.

 

There are still many comments in trade reports about the possible premature end to fishing in the North/Central region due to the continued high juvenile fish level. Recent reports have juvenile levels as high as 60%.

 

Trade reports say that buying interest has picked and that producers are getting more interested in selling --- buyers are said to be bidding quite a bit under current market prices --- so, price weakness is expected as some trades get done.

 

Peru trade reports are still full of El Nino comments and concerns and the water temperature does seem to be moving higher. Reports feel that there will be a moderate to strong El Nino event in the late summer to fall of 2024 --- that would be January to March/April 2024 in Peru.

 

 

European fishmeal prices – FOB North German port.

 

Type

Protein %

Price per

m/t USD

Herring fishmeal

72% protein

2,090

Danish fishmeal

64% protein

1,870

Peru fishmeal

64% protein

2,130

Chile fishmeal

67% protein

2,130

Iceland fishmeal

70% protein

2,000

 

 

ALL PRICES SHOWN ARE IN CONTAINER, ON VESSEL, AT ORIGIN --- US DOLLARS

Minimum shipment of 200 m/t for fishmeal

 

    Specification

Price per m/t FOB Vessel Peru port

Price per m/t

Chile port

 

 

 

   65% protein standard steam

1800/1820

 

   67% protein 150 TVN

1950/1970

 

   67% protein 120 TVN

2000/2020

2000/2020

   67% protein 1000 hist, 120 TVN

2050/2070

2050/2070

   68% protein 500 hist, 100 TVN

2150/2170

2100/2120

 

 

 

   Fish oil, crude bulk

No prices

5,100/5,200

   Fish oil, crude drums

No prices

No prices

   Fish oil, flexi tank

No prices

No prices

   Fish oil, Omega 3: 28%EPA/DHA

10,000+

No prices

 

INFORMATION:  gtee = guarantee, TVN = total volatile nitrogen, hist = histamine

 

 

The information contained herein is based on sources that we believe to be dependable, but we do not represent that it is accurate or complete. Nothing contained herein should be considered as an offer to sell or a solicitation of an offer to buy. All references to prices are subject to change without notice. Any opinions expressed herein are solely those of the author.

 

Copyright © 2023 Wayne S. Bacon

 

 

 

 

 

 

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