Yesterday, Roger recommended you price 2023 fertilizer. He meant fertilizer for 2024 crops.
Highlights
Is the weather or the war more supportive of these markets? Does it matter? Wheat certainly gets an extra boost on the war news as the war is in “The Bread Basket of the World.”
Russia took another swipe on Ukraine’s port of Odessa again Wednesday and will probably continue to do so. The Viterra and Kernel facilities were both bombed. Major damage was done. That news supported wheat overnight and the following news sent wheat to near limit up yesterday morning when the Russian Defense Ministry issued this statement:
"In connection with the termination of the Black Sea initiative and the curtailment of the maritime humanitarian corridor from 00:00 Moscow time on July 20, 2023, all ships en route to Ukrainian ports in the Black Sea will be considered as potential carriers of military cargo."
Turkey announced they will not be sending their Navy to protect ships with Ukraine cargo. For the past year, Turkey had offered to protect cargo vessels if the corridor deal was cancelled.
The United Nations spokesperson said there are several ideas being considered to get Ukrainian and Russian grain to global markets, as well as Russian fertilizer.
Brazil’s first crop of corn is planted in September and October and makes up about 22% of the nation’s corn. The safrinha (second) crop of corn is planted after soybeans and it is about 78% of Brazil’s annual corn production. It yields about 50 to 60% as much as the first crop because the dry season always starts before the entire safrinha crop is mature.
The state of Mato Grosso produces about half of Brazil's safrinha corn. Reports from around the state indicate very good corn yields and disappointing corn prices. The Mato Grosso Institute of Agricultural Economics (IMEA) is forecasting a record statewide safrinha (2nd crop) corn yield of 112 sacks per hectare (106.8 bu/ac, about 27 bushels more than normal) and a total production of approximately 50 million mts. At the present time, farmer selling of corn is nil due to low prices in the range of R$ 31.00 to R4 33.00 per sack ($2.90 to $3.05 per bu).