Fertilizer, wheat and sunflower oil prices are rising; Second. Vilsack rejects CRP’s request for acreage flexibility – AgFax

DTN writer Russ Quinn reported yesterday that “Fertilizer Retail Prices tracked by DTN for the last week of March 2022 move significantly higher again. All fertilizers were higher with some figures higher than double digits compared to last month.

“Opening the way higher was DPA. The phosphorus fertilizer was 17% more expensive compared to last month and had an average price of $1,033/tonne.

“DAP prices are now at highest level in the history of DTN’s dataset.

“DTN Retail Fertilizer Trends”, by Russ Quinn. DTN (April 5, 2022). Click on the image to enlarge

Quinn added that “most fertilizers continue to be considerably more expensive than a year earlier.”

And Reuters News reported yesterday that “Russia plans to continue setting quotas for fertilizer exports during the next sowing of winter cereals, expected this fall, and during the next sowing of spring cereals in the spring of 2023, an official said on Tuesday.

Yesterday too, Bloomberg’s Tatiana Freitas reported that, “Brazil gets her last wave of essential fertilizer from Russia before drop in supplies due to war in Ukrainewhich could harm the crops of the largest producer of crops ranging from coffee to sugar to soybeans.

“Dozens of Russian ships loaded with fertilizers head for Brazil, with final ship unloading May 5, according to StoneX analysts. After that, it’s anyone guess where brazilwho matters 85% of the fertilizer it needs, will get Provisions as war disrupts shipments to Russia, the leading supplier.

Meanwhile, Bloomberg writers Kim Chipman and Megan Durisin reported yesterday that “Wheat in Chicago surged as Drought in the United States and obstacles to trade routes in Ukraine threaten to tighten global grain supplies.

“Adding to the concern are record fertilizer prices this could cause some growers to not apply the chemicals, which could adversely affect grain quality,” the Bloomberg article states.

Dow Jones Writer Kirk Maltais reported yesterday that “May wheat delivery increased 3.5% to $10.45 1/4 a bushel on the Chicago Board of Trade on Tuesday, responding to both record conditions for winter wheat on the American plains and the specter of new sanctions on Russian exports.”

In other developments concerning wheat, Reuters editor Sarah El Safty reported yesterday that “Egyptt, often the world’s largest buyer of wheat, saw a increase in imports grain from Russia in March despite supply and payment disruptions following its invasion of Ukraine, which also caused traders to seek shipments from other suppliers.

“Egypt received 479,195 tonnes of wheat from Russia in March, 24% more the same month last year, according to freight data seen by Reuters. Ukrainian wheat imports amounted to 124,500 tonnes, down 42% year-on-year.”

Earlier this week, Reuters writer Mayank Bhardwaj reported that, “India’s Wheat Exports hit 7.85 million tons in the exercise until marcha all-time high and a sharp increase in 2.1 million tonnes the previous year, traders said, as Russia’s invasion of Ukraine cut off supplies from rival Black Seas.

And today, Bloomberg writer Sybilla Gross reported that, “No matter soaring fertilizer costs or tangled supply chains – of all inputs australian farmers are considering before the next harvest, there is one that matters more than the others: heavy rain prospects.

“Undeterred by high prices for many inputs at the moment, growers Down Under are ‘not really holding back in the region’,” according to Andrew Whitelaw, grain analyst at Thomas Elder Markets, who said month of heavy rain had increased soil moisture in the eastwhile Western Australia also had ‘received a good rain.’ With the outlook pointing to another rainy season, it is moving optimism about production just as seeding starts, Whitelaw said.

“With the war in Ukraine which has reduced exports from the Black Sea, one of the main growth regions of the world, and with wheat prices up around 30% since the Friday before the Russian invasion, the the world needs australian wheat more than ever.”

In oilseed news, Bloomberg’s Megan Durisin and Francine Lacqua reported yesterday that “Ukraine sunflower oil industry – the the biggest in the world – suffers significant reductions in plantings and exports because of the Russian invasion, said the largest producer.

“Farmers are kicking off the spring sowing season, and plantations could drop by 20%with yields also falling, Ievgen Osypov, managing director of Kernel Holding SA, said on Tuesday in a meeting on Bloomberg Television. Together, this means that the combined production of grains and oilseeds could fall to a maximum of 60 million tonnes, compared to more than 100 million tonnes last season, Osypov said.

And Tarso Veloso Ribeiro told Bloomberg yesterday that “The fighting around Mariupol has damaged a Cofco Corp. sunflower seed crushing plant. in Ukrainewhich produces almost 10% of the country’s supply, according to a person familiar with the matter.

Yesterday too, Bloomberg writer Kim Chipman reported yesterday that “US farmers could plant twice as many more acres of sunflowers than government plansaccording to a trade group, with a spike in prices following the war between Russia and Ukraine.

On the issue of conservation reserve program flexibilities, DTN Ag Policy Editor Chris Clayton reported earlier this week that “the Secretary of Agriculture Tom Vilsack wrote to the President and CEO of the National Grain and Feed Association saying that he shares his concerns of the war in Ukraine and its impact on grain production and exports, but USDA sees only potentially ‘marginal’ potential benefits suggestions for the opening of the conservation reserve program for planting crops this year.

The DTN article stated that “USDA added in Vilsack’s letter that USDA will continue to exercise CRP flexibility to hay and pasture due to drought or natural disasters.

“While it is clear that there are no significant short-term gains to be made from opening the program to agricultural production, I would like to emphasize that the USDA continue to monitor the crisis in Ukraine and its global repercussions. “

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Felix J. Dixon