-Global vegoil price surge continues
-Another Brazil corn crop estimate lowered
-Argentine livestock protest lifted – threatens to resume including grains
-India considering lower vegoil import taxes
NOTE: Due to Monday’s holiday, the EIA’s weekly energy/ethanol data will be released today, while Export Sales will be out on
Friday. The CFTC COT data will still be released on Friday as usual. Global vegoil markets continue to surge higher with Dalian palm oil futures nearly 6% higher overnight, Dalian soybean oil up more than 4% and Zhengzhou rapeseed oil up 3%. Malaysian palm oil futures were up another 1.6% overnight, as well.
 Brazilian ag consultant Datagro lowered their estimate of the corn crop to 101.7 MMT from 105.5 MMT previously, but remains above many other private estimates which have slipped below 100 MMT. CONAB was last at 106.4 MMT, with USDA at 102.0 MMT, both of which are likely to be further lowered in this month’s updates.
 While Argentine ranchers have lifted their halt of domestic livestock sales, initiated to protest the government’s 30-day ban on meat exports, they warned if talks with officials are not positive moving forward, they will resume the strike and may include grain farmers joining the protest halting grain sales, as well.
 Russia left their official estimate of this year’s wheat crop unchanged at 81.0 MMT and compares to USDA last at 85.0 MMT and 85.4 MMT last year.
ï‚· Russia implemented a floating grain export tax mechanism, effective yesterday, which will be adjusted on a weekly basis based on registered export sales prices. The initial duties are $28.10/tonne for wheat, $52.20/tonne corn and $39.60/tonne barley. Prior to the new system, duties were set in euros at 50/tonne wheat, 25/tonne corn, 10/tonne barley.
ï‚· India is reportedly considering lowering import taxes on vegoils in order to help control surging prices as the country relies on imports for nearly 2/3 of domestic demand. India currently has a 32.5% tax on palm oil and 35% on soybean oil. The prospect of lower taxes, i.e. lower domestic prices, prompting higher demand potential contributed to the overnight price strength in global vegoil markets.
ï‚· Indonesian domestic biodiesel consumption during Jan-April was down 8.2% from last year at 2.669 million kl (705 mil gallons), but biodiesel production during the same period rose 1.4% from last year to 2.95 mil kl (779 mil gallons). The government is targeting 9.2 mil kl (2.43 bil gallons) of biodiesel consumption this year, rising to 9.6 mil kl (2.54 bil gal) in 2022.
ï‚· India is pushing up its plan to open sales of 20% ethanol-blended gasoline nationwide to 2023 from the previous 2025 target, which was already moved forward from the initial 2030 target. This does not appear to be a mandate, but more so a
requirement ethanol-blended gasoline is available to consumers if desired. Indian ethanol production is sugarcane based.
ï‚· Indonesia passed in its tender for 240k tonnes of feed wheat.
Weather
Precip over the last 24 hours included .25-1.5†with 20% corn belt coverage (primarily east), while the Central/Southern Plains saw .25-.75†rains 15% coverage (central TX), while the Northern Plains were dry.
Brazil remains locked in drought conditions in many areas, with very limited precip in the 15-day forecast for Mato Grosso, while Parana and MGDS are expected to see rains over the next week.