Reuters reporters Pavel Polityuk and Johnathan Spicer reported that, “A total of 33 cargo ships carrying around 719,549 tonnes of foodstuffs have left Ukraine under a deal brokered by the United Nations and Turkey to unblock Ukrainian sea ports, the Ukrainian agriculture ministry said on Tuesday,” according to Kieth Good of Illinois Farm Policy News.
“In addition to the vessels that have already left Ukraine, the agriculture ministry said a further 18 were now loading or waiting for permission to leave Ukrainian ports,” the Reuters article said.
Polityuk and Spicer explained that, “The ministry said Ukrainian grain exports could reach 4 million tonnes in August, compared with 3 million tonnes in July.
“In a separate statement, the ministry said exports of key Ukrainian agricultural commodities had fallen by almost half since the start of the Russian invasion compared to the same period in 2021.”
And Reuters writer David Ljunggren further reported that, Ukraine had restored a rail link to neighboring Moldova after a 23-year hiatus and the connection could carry 10 million tonnes of freight a year, President Volodymyr Zelenskiy said in a video address on Monday.
Although he did not specify what kinds of goods, Ukraine is keen to find new ways to export millions of tonnes of grain that have been stranded by Russia’s invasion, Moldova borders Romania, a member of the European Union.
Also, Reuters writer Noor Zainab Hussain reported that, “Broker Marsh and Lloyd’s of London insurer Ascot said on Tuesday they have provided coverage for a vessel carrying grain and food products from Ukraine’s Black Sea ports under its new marine cargo and war insurance facility.
“Launched last month, it provides coverage up to $50 million for Ukrainian vital food supplies being shipped through safe corridors established by the newly signed Black Sea Treaty.”
With respect to agricultural production in Ukraine, Reuters writer Naveen Thukral reported yesterday that, “Grain traders union UGA on Monday cut Ukraine’s 2022 combined grain and oilseeds crop forecast to 64.5 million tonnes from the previous outlook of 69.4 million due to a smaller than expected harvested area caused by the Russian invasion.”
The Reuters article added that, “In its weekly crop progress report, the USDA rated 55% of the U.S. corn crop in good-to-excellent condition, down from 57% the previous week.”
Elsewhere, Bloomberg reported that, scouts on the first day of the Pro Farmer Midwest Crop Tour Monday found corn yields in South Dakota averaged 118.45 bu/acre, down 22% from the state’s 2021 tour average of 151.45 bu/acre. Ohio yields were estimated to average 174.2 bu/acre, down from 185.1 bu/acre seen last year.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $145.87 to $147.64 per cwt, compared with last week’s range of $142.85 to $149.00. FOB dressed steers, and heifers went for $220.22 to $224.36 per cwt, versus $215.08 to $225.57.
The USDA choice cutout Tuesday was down $1.72 per cwt at $262.80 while select was up $0.44 at $238.80. The choice/select spread narrowed to $24.00 from $26.16 with 117 loads of fabricated product and 35 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were steady at $2.40 to $2.50 a bushel over the Sep futures and for southwest Kansas were up $0.90 at $1.00 over Sep, which settled at $6.60, up $0.26 1/2.
No contracts were tendered for delivery against the Aug live cattle contract Tuesday.
The CME Feeder Cattle Index for the seven days ended Monday was $180.06 per cwt down $0.06. This compares with Tuesday’s Aug contract settlement of $180.90, down $0.50.