US corn acreage threatened by price cuts
Plunging corn prices throughout the Midwest are likely to detract US farmers from planting the largest corn crop in eight years.
Growers in early March said they intended to plant 97mn acres of corn this season, but sinking demand for fuel over the last two weeks has slashed near-term corn demand.
The ratio between soybean and corn prices in the Corn Belt and Minnesota is now above the 2.5 threshold typically seen as encouraging farmers to plant soybeans. At the start of the month, when the US department of agriculture (USDA) was surveying farmers' planting plans, the ratio was under 2.5 and favored corn acreage.
The USDA's survey showed farmers plan to plant an additional 1.5mn acres of corn from last season across Iowa, Illinois, Indiana, Ohio and Minnesota while cutting 650,000 soybean acres.
But seed suppliers typically allow farmers flexibility to alter their planting plans until very close to planting, a dealer said today, which could enable some price-driven switching with much of the Corn Belt yet to start fieldwork.
Ethanol production dipped to a near to a seven-year low of 840,000 barrels/day last week, according to the EIA, 16pc below the prior week with gasoline demand tanking as coronavirus-driven lockdowns reduced travel.
The cuts in ethanol production could result in a loss of up to 500mn bushels of corn demand and buyers across the Midwest have subsequently lowered bids for old-crop and new-crop corn, enabling the price ratio between corn and soybean to favor soybean planting.
New-crop corn bids from terminals in the Corn Belt and Minnesota fell by 6-9pc from the start of the month, while soybean prices fell just 1-4pc, according to the USDA.
The USDA releases acreage estimates throughout the season, and the greatest difference between March survey and final planting to-date has been 3.1mn acres on corn and 3.3mn acres on soybeans.
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Japan’s Mol starts operating LPG-fuelled VLGC
Japan’s Mol starts operating LPG-fuelled VLGC
Tokyo, 26 April (Argus) — Japanese shipping firm Mitsui OSK Line's (Mol) Singapore-based subsidiary Aramo Shipping started operating today a new LPG-fuelled LPG and ammonia carrier for domestic importer Gyxis. The 87,119m³ very large gas carrier (VLGC) Aquamarine Progress 2 was built by Japanese shipbuilder Namura Shipbuilding at Namura's Imari shipyard in south Japan's Saga prefecture. The vessel is equipped with a dual-fuel engine, which can burn LPG and conventional marine fuel. Mol expects use of LPG to reduce carbon dioxide (CO2) and nitrogen oxide emissions by 20pc and sulphur oxide and particulate matter emissions by 90pc compared with a heavy oil-dedicated vessel. The VLGC is also designed to be able to carry ammonia, eyeing potential demand growth for decarbonisation. Japanese shipping firms and shipbuilders have boosted construction of LPG carriers that can also ship ammonia, as demand for the cleaner fuel is expected to increase in future. Japan plans to co-fire ammonia at coal-fired power plants to reduce CO2 emissions, while aiming to use ammonia as a hydrogen carrier. Shipbuilders Kawasaki Heavy Industries and Mitsubishi Heavy Industries each delivered a VLGC, which can carry LPG and liquefied ammonia. Mol, in partnership with shipbuilders Tsuneishi Shipbuilding and Mitsui E&S Shipbuilding, completed risk assessments to design a mid-size ammonia-fuelled ammonia and LPG carrier , targeting to finish construction by 2026. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Etanol de milho deve compensar parte da queda da cana
Etanol de milho deve compensar parte da queda da cana
Sao Paulo, 25 April (Argus) — A produção de etanol de milho compensará parcialmente uma queda no processamento do biocombustível à base de cana-de-açúcar na safra de 2024-25, de acordo com a Companhia Nacional de Abastecimento (Conab). A companhia espera que a produção total de etanol – de cana-de-açúcar e milho – para a temporada atual atinja 34,1 milhões de m³, baixa de 4pc em comparação ao ciclo recorde de 2023-24. O processamento total de anidro, usado como mistura para a gasolina, deve crescer 6,2pc, 892.500m³ a mais que na safra anterior, a 15,1 milhões de m³. Já o hidratado deve recuar 10pc, para 18,9 milhões de m³. Do total que será produzido no ano, a cana-de-açúcar deverá ser matéria-prima para 27,3 milhões de m³ deste volume, 8pc a menos do que na safra anterior, à medida que sua moagem deve diminuir 3,8pc, para 685,8 milhões de t. Isto se compara com 713,2 milhões de m³ em 2023-24, o maior valor já registrado no país. Condições climáticas adversas, como falta de chuvas e altas temperaturas no Centro-Sul, reduzirão a produtividade no período, reportou a Conab. Enquanto isso, a área de plantação de cana-de-açúcar subiu 4,1pc, para 8,6 milhões de hectares (ha), com mais áreas em expansão e renovação. As usinas também devem continuar favorecendo um mix mais açucareiro em detrimento do biocombustível. A organização espera que a produção de açúcar cresça 1,3pc, para 46,2 milhões de t. Os preços do açúcar estão mais atrativos no mercado internacional, com importantes exportadores como Índia e Tailândia diminuindo os embarques e abrindo espaço para a commodity brasileira. Nesse cenário, o processamento do etanol de milho deve compensar "parcialmente" o volume menor de biocombustível de cana, segundo a Conab. Serão produzidos 6,8 milhões de m³ do produto, alta de 16pc na base anual. O etanol de grãos está quebrando recordes a cada safra nos últimos anos, crescendo exponencialmente especialmente no Mato Grosso, Mato Grosso do Sul e Goiás. O país construirá 10 novas plantas do biocombustível de milho nos próximos dois anos, afirmou a consultoria SCA Brasil. Por Laura Guedes Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2024. Argus Media group . Todos os direitos reservados.
Barge delays at Algiers lock near New Orleans
Barge delays at Algiers lock near New Orleans
Houston, 24 April (Argus) — Barges are facing lengthy delays at the Algiers lock near New Orleans as vessels reroute around closures at the Port Allen lock and the Algiers Canal. Delays at the Algiers Lock —at the interconnection of the Mississippi River and the Gulf Intracoastal Waterway— have reached around 37 hours in the past day, according to the US Army Corps of Engineers' lock report. Around 50 vessels are waiting to cross the Algiers lock. Another 70 vessels were waiting at the nearby Harvey lock with a six-hour wait in the past day. The closure at Port Allen lock has spurred the delays, causing vessels to reroute through the Algiers lock. The Port Allen lock is expected to reopen on 28 April, which should relieve pressure on the Algiers lock. Some traffic has been rerouted through the nearby Harvey lock since the Algiers Canal was closed by a collapsed powerline, the US Coast Guard said. The powerline fell on two barges, but no injuries or damages were reported. The wire is being removed by energy company Entergy. The canal is anticipated to reopen at midnight on 25 April. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Baltimore to temporarily open 4th shipping channel
Baltimore to temporarily open 4th shipping channel
Cheyenne, 24 April (Argus) — The Port of Baltimore is preparing to open another, deeper temporary shipping channel this week so at least some of the vessels that have been stranded at the port can depart. The new 35-ft deep Fort McHenry Limited Access Channel is scheduled to be open to commercially essential vessels from 25 April until 6am ET on 29 April or 30 April "if weather adversely impacts vessel transits," according to a US Coast Guard Marine Safety Information Bulletin. The channel will then be closed again until 10 May. The channel also will have a 300-ft horizontal clearance and 214-ft vertical clearance. This will be the fourth and largest channel opened since the 26 March collapse of the Francis Scott Key Bridge. The Unified Command has said that the new limited access channel should allow passage of about 75pc of the types of vessels that typically move through the waterway. Vessels that have greater than 60,000 long tons (60,963 metric tonnes) of displacement will likely not be able to move through the channel and those between 50,000-60,000 long tons of displacement "will be closely evaluated" for transit. There were seven vessels blocked from exiting the port as of 27 March, including three dry bulk carriers, one vehicle carrier and one tanker, according to the US Department of Transportation. Two of the bulk carriers at berth in Baltimore are Kamsarmax-sized coal vessels, data from analytics firm Kpler show. The US Army Corps of Engineers still expects to reopen the Port of Baltimore's permanent 700-foot wide, 50-foot deep channel by the end of May. The Key Bridge collapsed into the water late last month when the 116,851dwt container ship Dali lost power and crashed into a bridge support column. Salvage teams have been working to remove debris from the water and containers from the ship in order to clear the main channel. By Courtney Schlisserman Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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