Rice 2022: a good year for (some) farmers?
Just 9 months ago, rice was marketed as the cereal that would save the planet. As war broke out in the Black Sea, fertilizer prices spurt out of control, and wheat harvests failed across the globe, world rice production remained unaffected, restraining fears of global food insecurity and hunger. Pakistani policymakers breathe a sigh of relief, as a substantial surplus in rice production could help mitigate two of their worst fears: a grain/cereal shortage in the local market; and, a widening trade deficit. Unfortunately, that hope could prove short-lived. First, came the floods. The horrific monsoon rains destroyed Sindh’s coarse rice crop, which in the past has contributed up to 80 percent of Pakistan’s rice export by volume, and 75 percent by value. Pakistan’s annual rice production has now been written down by at least 3 million metric tons (MMT), down from 9.3MMT achieved last year.
November USDA milk production report highlights growth
The USDA Milk Production report illustrated a 1.3 percent increase in November’s milk production over the previous year. Following suit, cow numbers also showed growth with an increase of 38,000 additional head over the previous year and 1,000 additional head over October.
As revealed in the report, Texas led the way in year-over-year growth, up 30,000 head. Idaho also saw positive cow growth, up 12,000 head. Both California and Michigan saw a decrease in cow numbers.
Other states of note include South Dakota, up 10.8 percent on the strength of 19,000 more cows, and Georgia, up 13.1 percent with 10,000 more cows.
Phil Plourd, head of market intelligence at Ever.Ag, said that the variability of milk production performance and cow number additions and subtractions reflects all sorts of differences seeen from state-to-state and region-to-region.
U.S., Canada natgas output could hit growing pains in 2023
U.S. and Canadian natural gas production is expected to hit new records in 2023, but growth may be slow due to weakened demand, pipeline bottlenecks and a lack of new liquefied natural gas (LNG) export plants.
Gas demand surged worldwide after Russia cut off Europe’s primary supply, and the United States and Canada are expected to feed copious demand for exports in coming years, bolstered by high prices. The two countries produced a record combined 116 billion cubic feet per day (bcfd) in 2022.
The United States has become one of Europe’s most important sources of gas, providing essential energy security after Moscow’s invasion of Ukraine.
Next year’s growth could be slower than recent years. Major production fields in both countries are inhibited by a lack of pipelines to move gas to key markets, including export terminals in the U.S. Gulf. Canada is in the midst of building a large terminal to export LNG, but its completion is two years away.
“It’s not production that can’t keep up, it’s just simply infrastructure constraints,” said Alan Armstrong, chief executive of Williams Cos, one of the biggest U.S. pipeline companies.
Oman plans 10pc oil production boost in 2023
Oman’s Finance Ministry estimates it will boost oil production by more than 10 percent next year to 1.175m barrels per day.
The ministry announced a preliminary budget for 2023 on Tuesday with an oil price of $55 a barrel, less than today’s level of around $80.
It’s also far below analysts’ expectation for Brent to average $95 next year, according to a Bloomberg survey.
The country currently pumps around 1m barrels a day of crude and condensate, a light type of oil.
It is a member of OPEC+, a 23-nation producers group led by Saudi Arabia and Russia.
This month, the alliance decided to maintain output at current levels.
Tea production increases in November
Sri Lanka tea production for November 2022 totalled 20.24 M/Kgs, showing a marginal increase of 0.18 M/Kgs vis-à-vis 20.06 M/Kgs of November 2021.
High and Low Grown elevations have shown a gain, whilst the Medium Growns have shown a decline over the corresponding month of 2021.
However January-November 2022 cumulative production totalled 231.86 M/Kgs, recording a significant decrease of 47.10 M/Kgs vis-à-vis 278.96 M/Kgs of January-November 2021.
This would be the lowest recorded for the period under review since 1995 where it recorded approximately 225.70 M/Kgs. On a cumulative basis, all elevations have shown a decline over the corresponding period of 2021.
Iron ore price hits six-month high as China plans more stimulus
The iron ore price hit a fresh six-month high on Thursday, propelled by brightening demand prospects in China.
As the Chinese economy faces risks from rapidly spreading covid-19 infections and a bleak outlook for global growth, policymakers are aiming to boost the scale of consumption and investment, the official Xinhua news agency said on Wednesday.
Boosting domestic demand will help China to pursue higher-quality economic growth and cope with external risks, Xinhua said, citing the 2022-2035 plans issued by the cabinet.
According to Fastmarkets MB, benchmark 62 percent Fe fines imported into Northern China were changing hands for $112.71 a tonne Thursday morning, up 2.5 percent.
Top quality wheat crop in 2022
A high proportion of this year’s wheat crop is of “excellent quality,” falling into the top two grades, with high protein content across all Canadian wheat classes, says Cereals Canada and the Canadian Grain Commission. The New Wheat Crop Report says more than 90 percent of both Canada Western Red Spring and Canada Prairie Spring Red graded No. 1 and No. 2 as did 80 percent of Canada Western Amber Durum. Production rebounded to average volumes with 34.7 million tonnes of wheat harvested. The New Wheat Crop Report is prepared for buyers and in the coming weeks, it will be presented in-person when a delegation representing the cereals value chain travels to more than 15 countries in Asia, Latin America, Europe, Africa and the Middle East.