-Commerce Department to review Argentine biodiesel anti-dumping duties, potentially opening the door to resumed imports
-Regular rains remain in S. American forecast, but potentially localized very heavy in Argentina next week
-Government reports delayed 1 day next week due to Veterans Day holiday
While markets are open on Monday’s Veterans Day holiday, U.S. government offices are closed so next week’s regular USDA and EIA reports will be delayed one day from their regular release days.
At the prompting of a request by the Argentine government, the U.S. Commerce Department said they will begin a “changed circumstances” review of their decision last year to apply anti-price dumping duties to Argentine biodiesel in what could open the door to resumed imports. No specific timeframe has been provided on the proceedings, but “changed circumstances” reviews typically take 270 days, which could result in a ruling by August 2019. Prior to the duties being applied, the U.S. imported 291 million gallons of biodiesel from Argentina during Jan-Aug 2017 and 449 million gallons in all of 2016.
Ukraine has exported 7.8 MMT of wheat since the start of the marketing year on July 1, with corn exports being 3.2 MMT so far. Total grain exports so far of 14.1 MMT are down a minor 0.6% from last year, while they expected marketing year total grain exports to rise to 42.5 MMT from 39.4 MMT last year. In yesterday’s WASDE report, the USDA raised projected Ukraine corn exports to 27.0 MMT from 25.0 MMT previously and jumping sharply from last year’s 18.5 MMT, as their corn crop was raised to 33.5 MMT from 31.0 MMT previously and 24.1 MMT last year. USDA left their estimate of Ukraine wheat exports unchanged at 16.5 MMT, which would be down from 17.8 MMT last year.
Yesterday, South Korea passed on their tender for 130k tonnes of optional-origin corn citing prices being too high, which were offered at $206.95-$208/tonne c&f.
Russia’s ag ministry said this year’s wheat crop estimate is unchanged at 69.3 MMT and is similar to USDA current assumptions of 70.0 MMT.
Palm oil futures were under solid pressure overnight, falling to the lowest levels in over three years. Continued weakness in to the end of the year is seen possible, but most palm oil analysts see firming prices in 2019.
There were no USDA sales announcements this morning.
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