Several months ago, rebels attacked and put out of action the largest oil field in Libya. That oil field went back into production this past weekend. It was attacked again yesterday by rebel forces and crude oil went from 60 cents lower on the day to $1.20 higher before settling at $119.41, up 91 cents.
India plans to double its purchases of Russian crude oil. They buy it at a 30% discount because of sanctions on Russian crude, blend it 50/50 with non-Russian crude and sell it at full price on the open market as non-Russian crude oil. It is allowed in the fine print of the Russian sanctions decree issued jointly by the EU and the USA. This is just one of thousands of reasons no one wants to see this war end except the people whose lives and property are at risk and Putin gets all the blame publicly. Privately, businessmen and politicians around the world want Putin to never win and never lose, just keep this war going.
There is a meeting in Istanbul, Turkey to discuss the opening of a grain corridor to and from Ukraine. However, the huge grain port of Odessa is still off the table and the corridors are only for Mariupol and Berdyansk in the Russian occupied zone. The Ukrainian ag ministry says that it could take up to 6 months to remove all of the mines before shipping is possible. Turkey says it will help clear the mines, but nobody has started.
Ethanol production in the USA is running 8% higher this marketing year than a year ago.
Exports of distillers’ grains are up 7% in the first four months of 2022 over last year.
US biodiesel exports had a big increase to 70,214 mt in April. Why export? It is over $6 a gallon in the USA.
An area 30 miles west of Des Moines received 6 inches of rain in 2½ hours yesterday morning.
Kory Melby is a former Minnesota farmer who immigrated to Brazil about 21 years ago and became a market advisor on everything agriculture. From time to time he shares his thoughts and impressions. This is what he wrote On June 5th, 2022:
Hi, I will be in Mato Grosso next week for circa two weeks.
I will be posting photos and videos on either Twitter, Facebook or Instagram from time to time.
In Parana state, Cigarrinha do Milho (corn leaf hopper) is spreading a disease called Enfezamento. Basically, it destroys the plants ability to translocate nutrients and fill the cob. The corn plants are dying too early while still in milk stage. There seems to be only a few varieties that are resistant to the disease. There are many factors such as sanitary concerns with volunteer corn, pesticide applications, seed treatment, and climate variability. One variety that is resistant in Mato Grosso might be very susceptible in Parana, for example. Insurance companies are saying they will not pay for the losses. Reports are coming out saying up to 30-40% of Parana 2nd crop is lost due to this disease.