Saturday, December 23, 2023

Weekly Report -- December 23, 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    

 

 

Here we are just a couple of days before the Christmas holiday and just over a week until 2024. Goodness, 2023 certainly went past quickly. 2023 was probably the most difficult year for the world that we have seen in a long time and 2024 doesn’t look like it will be any easier.

 

Sitting here in our wee town in France we are not directly affected by all the world problems. We get all the bad world news on BBC or France24 but it all seems to be far away from little St Remy. However, we do see that all our local prices have increased, just like everywhere. Much is still OK, Amazon.com still gives us next day delivery and gasoline prices are dropping but onions cost a fortune.

 

It would be great to be looking towards a better year in 2024 and I hope that it is better, but it certainly doesn’t look like it will be.

 

All the best for Christmas and New Year and for a better 2024 than I expect.

 

Wayne Bacon

 

 

WEEKLY USA GRAIN AND PROTEIN REPORT December 23, 2023

 

It was a down week for most everything this week with US corn down by about USD 4 m/t, US soybeans down by almost USD 10 m/t, soymeal down by about USD 5 m/t and all US wheat prices dropping by around USD 6 m/t.

 

Next week is only a 4 day week for grain markets due to the Christmas holiday on Monday and trading is expected to be much lower as so many operations are closed or working reduced staff until January. Of course, as we have seen in past years, crazy things can happen to prices when volume is low and traders few.

 

There was not much reason for the corn market to get excited this week, so it just quietly slipped a little lower. Trade reports do feel that corn prices will move lower the closer that we get to South American corn supply. Weather in South America looks great for crops and corn crop conditions are said to be very good on average.

 

The weakness in soybean prices was perhaps due to the higher Brazil soy production estimate from one organization. Production was increased by 0.38% while exports were increased by 1.0%. Reports say that speculators are reducing their short futures positions on soybeans --- perhaps just taking profits or anticipating a change in market direction.

 

There was almost no news that would affect US wheat this week although, like soybeans, speculators are reported to be reducing their short futures positions. Perhaps a wee price rally is expected.

 

 

 

 

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

 

US Gulf to Europe: Panamax

$31.00

Steady

 

US Gulf to Spain: Panamax m/t

$31.00

Steady

 

US Gulf Israel: Panamax m/t

$38.00

Steady

 

US Gulf to Egypt: Panamax

$38.00

Steady

 

US Gulf Turkey: Panamax m/t

$39.00

Steady

 

US Gulf Morocco: Handi

$39.00

Steady

 

US Gulf Algeria/Tunisia: Handi

$40.00

Steady

 

US Gulf Nigeria: 30,000 m/t

$45.00

Steady

 

US Gulf other Med: Handi

$41.00

Steady

 

US Gulf South Africa: Handi

$41.00

Steady

 

US Gulf to Philippines: Panamax

$52.00

Steady

 

US Gulf Japan: Panamax

$61.00

Steady

 

US Gulf China: Panamax

$60.00

Steady

 

US PNW South Africa – 40,000 m/t

$65.00

Steady

 

US PNW Philippines: Panamax

$39.00

Steady

 

US PNW Japan: Panamax

$32.00

Steady

 

US PNW China: Panamax

$31.00

Steady

 

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

Steady

 

France/Germany to China: Panamax

$82.00

Steady

 

France/Germany to Egypt: Panamax

$33.00

Up $1.00

 

France/Germany to Iran: Panamax

$45.00

Steady

 

France/Germany to Jordan

$40.00

Steady

 

France/Germany to Morocco: Handi

$31.00

Steady

 

France/Germany to Saudi Arabia: Panamax

$65.00

Steady

 

France/Germany to Turkey: Handi

$35.00

Steady

 

France/Germany to Yemen: Handi

$66.00

Steady

 

 

 

 

 

Argentina to Algeria: Handi

$62.00

Up $1.00

 

Argentina to China: Panamax

$51.00

Steady

 

Argentina to Japan: Panamax

$52.00

Steady

 

Argentina to Egypt: Panamax

$53.00

Steady

 

Argentina to Europe: Panamax

$37.00

Steady

 

Argentina to Morocco: Handi

$61.00

Up $1.00

 

Argentina to Libya: Handi

$63.00

Up $1.00

 

Argentina to Jordan: Panamax

$55.00

Steady

 

Argentina to Saudi Arabia: Panamax

$63.00

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

$37.00

Steady

 

Argentina to Tunisia: Handi

$62.00

Up $1.00

 

 

 

 

 

Brazil to Algeria/Tunisia: Handi

$50.00

Steady

 

Brazil to China: Panamax

$46.00

Steady

 

Brazil to Japan: Panamax

$47.00

Steady

 

Brazil to South Korea: Panamax

$48.00

Steady

 

Brazil to Europe: Panamax

$39.00

Steady

 

Brazil to Morocco: Handi

$49.00

Steady

 

Brazil to Iran: Panamax

$61.00

Steady

 

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

$64.00

Steady

 

Brazil to Spain: Panamax

$39.00

Steady

 

Brazil to Turkey/Egypt: Panamax

$59.00

Steady

 

 

 

 

 

Australia to Saudi: Panamax

$52.00

Steady

 

Australia to Europe: Panamax

$61.00

Steady

 

 

 

 

 

 

 

Black Sea freight

 

 

 

 

Black Sea to China: Panamax

$62 Russia

Ukraine $57

 

Black Sea to Indonesia: Panamax

$60 Russia

Ukraine $77

 

Black Sea to Egypt: 40/50,000

$23 Russia

Ukraine $30

 

Black Sea to Egypt: 30,000

$23 Russia

Ukraine $29

 

Black Sea to Iran: Panamax

$50 Russia

Ukraine $61

 

Black Sea to Europe: Panamax

$28 Russia

Ukraine $30

 

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

$45 Russia

Ukraine $70

 

Black Sea to Turkey – Handi

$16 Russia

Ukraine $40

 

 

 

 

 

Black Sea to South Africa – Handi

$57.00

Steady

 

 

 

 

 

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

$63.00

Corrected

 

Russia to Egypt – coaster 5,000 m/t

$83.00

Corrected

 

Ukraine to Turkey – coaster 5,000 m/t

$65.00

Corrected

 

Ukraine to Egypt – coaster 5,000 m/t

$96.00

Corrected

 

 

 

 

 

 

 

 

 

Baltic Dry Index

2094

Down 254

 

Baltic Capesize Index

3398

Down 715

 

Baltic Panamax Index

1909

Up 9

 

Baltic Supramax Index

1369

Down 57

 

Baltic Handisize Index

879

Down 29

 

 

 

 

 

Global Container Index - Freightos

1346

Up 65

 

   

 

 

 

 

 

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 264<<267 Apr   

 

   Wheat, USA Hard Red Winter 11 protein, US Gulf

USD 284<<287 Apr      

 

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

USD 205<<210 Apr

 

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

USD 245<<250 Apr 

 

   Wheat, Romania 12.5 pro

USD 275<<280 Apr   

 

   Wheat, Superior, France, Rouen

USD 247<<254 Apr      

 

   Wheat, milling, 12.0%, Argentina, Upriver

 USD 235<<260 Apr     

 

   Wheat, feed, Black Sea

USD 200/210      

 

 

 

 

   Barley, France, Rouen port

USD 220/225

 

   Barley, feed, Argentina, upriver

USD 220/225

 

   Barley, feed, Black Sea, 30,000+

USD 190/195

 

   Barley, feed, Australia

USD 260/265

 

 

 

 

   Corn, 2YC FOB NOLA USA

USD 210<<215 Apr 

 

   Corn, 3YC FOB USA Pacific northwest

 USD 230<<235 Apr  

 

   Corn, FOB Argentina port, upriver

USD 215>>210 Apr  

 

   Corn, FOB Brazil port

USD 230>>215 Apr 

 

   Corn, FOB France – Atlantic

USD 219/222

 

   Corn, FOB Romania

USD 230<<240 Apr

 

   Corn, FOB Russia

USD 210<<225 Apr

 

   Corn, FOB Ukraine, 30,000+ m/t

USD 185<<195 Apr

 

   Sorghum, FOB Argentina port

USD 285/290

 

   Sorghum, FOB Texas

USD 268/271

 

 

 

 

   Soymeal, 48% protein, FOB NOLA

USD 465>>455 Apr  

 

   Soymeal, 48% protein, USA, Rotterdam

USD 495>>485 Apr  

 

   Soymeal, 47% pro, FOB Argentina

USD 470>>415 Apr     

 

   Soymeal, 48% protein, Brazil, Rotterdam – spot

USD 510/515

 

   Soymeal, 48% protein, FOB Brazil

 USD 450>>415 Apr 

 

 

 

 

   Soybeans, FOB NOLA

USD 505<<510 Apr

 

   Soybeans, Argentina, FOB

USD 500>>460 Apr

 

   Soybeans, Brazil, FOB

USD 525>>470 Apr

 

   Soybeans, Black Sea

No prices

 

 

 

 

   Corn Gluten Meal, USA FOB NOLA

USD 640/650

 

   Corn Gluten Feed, USA FOB NOLA

USD 225/230

 

   DDGS corn, 35 profat, USA FOB NOLA

USD 275>>265 Apr

 

 

 

 

 

 

 

 

 

Corn gluten meal prices were down this week due to very good supply availability and a drop off in demand from the pet food industry. Lower CGM prices should attract new buying interest from overseas users. Corn gluten feed prices were steady during the week.

 

DDGS domestic and export prices were lower this week by as much as USD 5 m/t for January and February and as much as USD 8 m/t lower for March and April. Supplies to export ports were very good which is putting some pressure on prices.

 

Export buyers of feed ingredients in containers, especially to the Mediterranean and Middle East area, are finding it more difficult to arrange freight as the realignment of shipping schedules by container lines due to Red Sea problems is making Med freight harder to fix. This is affecting shipments from Asia west bound and the USA eastbound.

 

 

 

 

 

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

 

There is still no quota for fishing in the South of Peru but there is now a 10 day fishing period allowed from December 21 to 31. Any catch will be applied against the new 2024 South quota which will be announced in January.

 

The weekly catch in the Central/North region is still very low due to mini-bans and poor landings in Paita and Chimbote -- catch was only as 21,000 m/t for the week --- this brings the total catch to 1.103 million m/t with 578,400 m/t still available on the quota.

 

Prices in Peru for better grades are remaining strong as supply is limited while the prices for lower grades are slipping a bit. China would like to buy more but they need Prime grades as stocks in China are mainly standard fishmeal. There is just not much Prime or Super Prime fishmeal available.

 

MSI Ceres mentioned this week that container rates for fishmeal are expected to move higher shortly due to the problems in transiting both the Panama Canal and the Red Sea.

 

European fishmeal prices – FOB North German port.

 

Descriptions and protein levels have been adjusted this week thanks to input from FF Skagen.

 

Type

Protein %

Price per

m/t USD

Herring fishmeal

72% protein

2,010

Danish standard fishmeal

71% protein

1,855

Peru fishmeal

65% protein

2,050

Chile fishmeal

66% protein

2,050

Iceland fishmeal

71% protein

2,030

 

 

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

1550/1570

 

   67% protein 150 TVN

1650/1670

 

   67% protein 120 TVN

1800/1820

1800/1820

   67% protein 1000 hist, 120 TVN

1920/1940

1900/1920

   68% protein 500 hist, 100 TVN

2020/2040

2050/2070

 

 

 

   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

12,000+

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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