Hello, Partners
Get ready to dive into the sizzling world of Plant-Based trends. Buckle up as we unravel the latest scoop: the demand for Animal Nutrition products is skyrocketing, yet prices are playing a downward dance. Animal Nutrition biz has awakened to a new era, and the market pulse is racing. Let’s dish out the delectable details in this edition!
Hottest Products of the Week
Starches
The starch market is experiencing a seismic shift with notable developments. VWG is on the rise, driving up prices at food. At the same time, Cargill has caused turmoil in the starch and gluten landscape by closing two factories in response to a labor strike.
Proteins
There’s a lot going on at the plant protein frontier! The VWG is flexing its muscles and driving up prices in the food sector. On the demand side, significant demand has emerged for organic corn gluten meal for Animal Nutrition. In addition, organic rice protein is in the spotlight as our Spanish colleagues are actively looking for this protein powerhouse for Animal Nutrition.
Sweeteners
Get ready for a sugar storm! While Chinese products, such as Erythritol and Fructose are stable, the rest of the Sugar market is in chaos. It’s a wild ride where stability is a luxury and unpredictability is the name of the game. Stay tuned as we unravel the sweet and tumultuous twists and turns in this issue!
What else?
Europe & Africa
UK
Sugar futures are seeing marginal increases on the New York and London stock exchanges due to support from rising oil prices and concerns over a challenging sugar harvest in Asian regions. As of 8:32 AM (Brasília time), the primary raw sugar contract in New York rose by 0.25% to 27.56 cents/lb, while in London, the main contract increased by 0.83%, reaching $745.00 per ton. The sugar market’s movements are influenced by a 3% surge in oil prices on the international stage, driven by fears of an extended conflict escalation in the Middle East, impacting decisions on whether sugar mills will lean towards sweeteners or ethanol in their production mix.
Ukraine
Since July, Russia has reportedly destroyed nearly 300,000 metric tons of grain through attacks on Ukraine’s port facilities and ships, jeopardizing global food security, according to the Ukrainian government. Moscow’s withdrawal from a U.N.-brokered deal led to 17 attacks, damaging six civilian ships and 150 port and grain facilities, disrupting Ukraine’s grain exports via the Black Sea. Deputy Prime Minister Oleksandr Kubrakov emphasized that this is Russia’s effort to worsen food crises in nations dependent on Ukrainian products, with the damage reducing Ukraine’s grain export potential by 40%.
The Americas
USA
U.S. corn export demand has encountered challenges, notably from China redirecting its purchases to Brazil, the current leader in corn exports. Despite an overall improvement in U.S. corn export demand, China’s reduced involvement has impacted sales, constituting around 28% of the expected annual volume as of September 28. Concurrently, U.S. soybean exports face a notable decline, influenced by Brazil’s robust presence in the market, leading to concerns about potential challenges for the U.S. in the evolving global trade landscape.
USA
Soybean prices in Chicago continue to climb, driven by robust U.S. crushing figures and a notable decrease in U.S. soybean oil stocks, reported by Nopa. The market remains attentive to adverse weather conditions affecting Brazilian sowings, while U.S. soybean harvests, reaching 62% completion by October 15, have surpassed the five-year average. Despite varied movements in wheat and corn futures at the Chicago closing, soybean futures for November 2023 saw an appreciation to $12.97/bu.
Asia & Oceania
China
China has given the green light to the cultivation of various genetically modified (GM) corn and soybean seed varieties, signaling a strategic move to enhance crop production and reduce dependence on foreign sources. The approval, covering 37 GM corn and 14 soybean seed varieties, aligns with China’s pursuit of self-sufficiency and bolstering food security. Although the current planting area for GM crops is relatively small at 4 million mu (267,000 hectares), the approved seeds could potentially increase yields in China by up to 12%, leading to notable surges in Chinese seed company stocks and indicating significant economic potential in the country’s agriculture and seed industries.
Russia
Russia is expected to boost exports of wheat, sunflower oil, rapeseed oil, beef, and other agricultural products to Indonesia, potentially exceeding $600 million, according to experts from the federal center “Agroexport.” The Deputy Minister of Agriculture of Russia, Sergey Levin, highlighted a threefold increase in agricultural exports to Indonesia from January to August 2023. The ongoing business mission of Russian agricultural exporters in Indonesia aims to strengthen ties, with a focus on wheat, sunflower oil, and rapeseed oil, as Russia holds key positions in global exports for these commodities.
