The Feb. 9 World Agricultural Supply and Demand Estimates (WASDE) report lowered U.S. corn ending stocks by 50 million bushels from last month, with exports raised 50 million bushels due to historically large corn purchases by China. The supply/demand balance pushed up USDA’s season-average corn price estimate by 10 cents/bushel.
Increased exports and lower stockpiles were also reported for U.S. soybeans, with ending stocks falling 20 million bushels from last month, to 120 million. If realized, USDA said soybean ending stocks would be down 77 percent from 2019/20 and the lowest since 2013/14. The supply/demand outlook for 2020/21 U.S. wheat was largely unchanged from last month.
The U.S. Department of Commerce on Feb. 9 announced its affirmative final determinations in the countervailing duty (CVD) investigations of phosphate fertilizers from Morocco and Russia. Final subsidy rates assessed by DOC were 19.97 percent for Morocco and 9.19-47.05 percent for Russia.
The case now moves on to the U.S. International Trade Commission for its final decision due March 25.
Corn futures in Chicago climbed for a second day, touching a new seven-year high amid expectations the U.S. government will cut its domestic inventory outlook because of increasing demand from China. The U.S. Department of Agriculture will reduce estimates
for corn and soybean stockpiles by 11 percent and 14 percent, respectively, in its monthly supply and demand report Tuesday, according to a Bloomberg survey of analysts. China, the
biggest pork producer, is importing record amounts of both crops as traders focus on predictions for U.S. exports and output in South America, which has suffered from adverse weather.
Yara International ASA, Oslo, reported a 24 percent rise in fourth-quarter net income, to $246 million ($0.93 per share) on revenue of $2.93 billion, up from the previous year’s $199 million ($0.73 per share) and $3.03 billion, respectively. Excluding currency effects and special items, the basic earnings per share was $0.76 versus $0.80 a year earlier.
Adjusted EBITDA was down 3 percent to $511 million, from $524 million a year ago, mainly reflecting higher deliveries offset by increased gas prices. Total deliveries for the fourth quarter rose 3 percent to 9.33 million mt, with 7.01 million mt of fertilizer delivered (4Q 2019: 6.48 million mt).
Yara said it is establishing a global Clean Ammonia unit to capture growth opportunities “within carbon-free food solutions, shipping fuel and other clean ammonia applications”.
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