The videonews “Agricultural Market” offers a selection of recent information on agricultural commodities used for livestock feeding.

Severe climatic events are affecting different parts of the world.
California, Canada and Brazil are experiencing extreme drought.
The heat wave also hit the Scandinavian countries.
On the contrary, heavy rains hit Western Europe hard, especially Germany.
A few days ago, floods also occurred in China.
The effects of these climatic phenomena have not yet been estimated, but they could affect agricultural production around the world.

CORN

For the new season, which will start on September 1, production is expected to increase for the main countries compared to the previous season, after the difficulties encountered in the 2020-21 season, including the current drought in Brazil.

Chinese imports are expected to be stable, despite the policy of reducing the use of corn in animal feed, aimed at supporting the use of alternative raw materials.

Trade Update – European corn imports in the first 5 months of 2021 were lower than last year, reflecting a sharp decline from Ukraine. Italy’s imports recorded a decline in April.

SOY

Global soybean trade has slowed in recent weeks. With Chinese demand as the driving factor, the weakening export pace can be attributed to a softening of Chinese purchases. Soybean stocks in China, already at high levels, continue to grow as earlier imports exceeded the monthly crush pace.

Soybean availability in the United States is expected to increase, but exports could suffer from competition with South America, where larger availability is expected for the October-December period.

Trade Update – EU-27 Soybean imports in May 2021 decreased significantly, especially from Brazil and Canada. Italy follows an opposite trend, in fact it imported significant volumes from Brazil, but Canada and the United States do not appear among the main suppliers in May.

WHEAT

High yields in the EU-27 have led to an increase in supply. After the low temperatures and droughts in April and May, the wheat harvest benefited from a more favorable climate.

All North African countries have implemented domestic support policies that encourage domestic wheat production and seek to lower dependency on international suppliers. This could affect the export of the EU, the main supplier, which competes with Russia, Ukraine and Canada on this market.

Australia is a new competitor in the Asian markets for Canada and the United States. The production and exports of the two North American countries are expected to decline, also as a result of the changed use of agricultural areas for other crops. The lower availability could support the high export prices.

Trade update – EU-27 total Wheat exports in the first 5 months of 2021 were lower than last year, however Durum Wheat exports to Tunisia recovered in May 2021. In the first four months of 2021, Italy exported 66,555 tons of durum wheat to Tunisia and Algeria.

SUNFLOWER SEEDS

Sunflower Seed production in Russia is estimated at record highs for the new season, with crop areas and yields on the rise.

In Italy, the cost of proteins obtained from whole grain Sunflower extraction meal is, from April 2021, higher than that of proteins obtained from Soybean extraction meal.

Trade Update – After a few months of decline, European Sunflower seed imports recovered in May 2021, with significant increases from Argentina and Russia.

Market Snapshot

This infographic shows some key variables to analyze the situation of the Italian and international market at a glance.

The colors represent the variation: red for a decrease, green for an increase, blue for stable values, gray with an orange background for unquoted values.

Fonte: CLAL processing on IHS, Eurostat, ISTAT,
CCIAA Bologna, CCIAA Foggia, FranceAgriMer, agridata.ec.europa.eu, USDA-AMS, Mercado Rosario, Cepea