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Europe
One-third of the tomatoes sold in the EU in Q1 came from Morocco.
We see a North African country climbing up the statistics quite valiantly. A new report shows that 31% of tomatoes sold in the EU in the first quarter of this year came from Morocco, while those originating from Spain accounted for only 25% of tomatoes sold in the EU in the same period. This is the first time in history that Morocco has sold more tomatoes to the EU than Spain in the first three months of the year.
EU seeks revised GMO rules to ease restrictions on genetically modified crops.
The European Commission has proposed to revise its rules on genetically modified organisms. The decision aims to ease some restrictions on crops produced using newer gene-editing technologies. The EU executive said farmers would gain access to climate- or pest-resistant crops that require less fertilizer or pesticides. On the other hand, consumers would be able to buy food with better nutritional value or lower allergen content.
Most Hungarian producers of cereals are expected to fail this year.
After the big price increase in 2022, the grain market saw a similar rapid drop in prices, which does not bode well for growers this year. This could be problematic as farmers already started the crop waiting to be harvested, even with the previous very high input costs. Right now, the price increase is low and waiting is not a clear choice due to limited storage capacity and financing costs for storage. The predictions are saying that most farmers will probably fail on rye grains as well.
The Americas
The production of Sugar in Brazil meets market expectations in early June.
Brazilian sugar production in the central and southern regions was roughly in line with market expectations in the first half of June, latest data shows. Rains, which had led to a jump in yields, are now hampering crush operations. Sugar production totaled 2.55 million tons in this period, 18.7% more than in the previous year.
Soybean acres could overtake corn in the United States.
Area planted for soybeans in the U.S. could surpass the current leader, and corn is to meet soybean oil demand for renewable diesel. In connection with that, gradual expansion of crushing plants will drive a need for an additional 600 million bushels within a few years. Ongoing growth in domestic grain and oilseeds demand will support prices while the U.S. share of the global export market continues to decline, according to the newest report.
Canadian wheat plantings reach new highs.
Wheat acreage in Canada has risen to its highest level in more than two decades. It’s one of several crops to see an increase in 2023, according to Statistics Canada’s June 2023 Field Crop Survey. In addition to wheat, other crops with notable increases in plantings in 2023 included rapeseed, barley, corn for grain, and soybeans. Less acreage was planted to oats, lentils and dry peas. The rise in wheat may be due to favorable prices and strong global demand.
Asia & Oceania
The food ministry in South Korea urges companies to cut wheat flour prices to fight high inflation.
In an effort to combat high inflation, the South Korean government has urged major food manufacturers to lower the price of wheat flour, the basic ingredient in many food products. Flour producers said they would review the possibility of lowering the price of flour and other flour-based products. The country imports about 99 percent of its Wheat, mainly from Australia (1.18 million tons), the United States (1.14 tons) and Canada (246 190 tons). This plant for livestock feed worth $583.6 million was imported from India (42 percent) and Australia (37 percent). The self-sustainability rate for Wheat in South Korea is about 1.1 percent.The import duty on Wheat in India may be reduced.
The tariff on wheat imports to India may be lowered by a decision of the country’s government. This is aimed at reducing pressure on price increases and fighting inflation. At the same time, the country intends to start selling wheat and rice on the open market from July 5, offering 400 thousand tons of wheat and 500 thousand tons of rice in the first electronic auction. India is the second largest wheat producer after China. The country produces more than 100 million tons of grain annually, but supplies most of it to the domestic market.
El Niño returns. It could conjure up a new economic storm.
Just when you thought you could hope for a peak in interest rates soon, more bad news arrives. It looks like the El Niño weather phenomenon has returned. Its occurrence usually causes or exacerbates flooding, heat waves, water shortages and wildfires, especially in the Southern Hemisphere. The resulting damage to crops and infrastructure has an inflationary effect, putting pressure on central banks to tighten monetary policy. If climate change makes such events stronger and become more frequent, supply shocks will become more entrenched.
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