South Africa makes largest weekly purchase of U.S. wheat in five years - Reuters

Drought-ravaged South Africa bought the largest weekly amount of U.S. wheat since 2011 due to widespread drought in that country and competitive U.S. prices. Reuters said citing USDA export data.

Related: Drought impacts South Africa

USDA on Thursday showed South Africa bought 45,000 metric tons of 2016 hard red winter wheat last week. That is the largest purchase of that class of wheat since 2011 and the largest weekly purchase of any variety since 2011.

South Africa buys wheat, Argentine wheat exports surge. (Photo: Alexan2008/Thinkstock)

USDA records show that year-to-date it bought an accumulated 49,100 of 2015 U.S. soft red winter wheat and 7,700 of 2015 spring wheat. But of those purchases were made over time.

Earlier in May, a Bloomberg report, quoting an agricultural economist, said South Africa may have to import about 2 million metric tons of wheat this year after drought cut last year’s production to a four-year low. The 2 million tons would be the largest import total since 1991.

Related: El Nino puts South Africa in market for grain

Argentina wheat exports surge in first quarter – Reuters

Argentine wheat exports more than doubled in the first quarter, that government’s data showed, as farmers sold stockpiles ahead of an expected jump in plantings spurred by the open-market policies of new President Mauricio Macri, Reuters said this week.

The surge in Argentine wheat sales is hitting an oversaturated world market and putting downward pressure on wheat prices already near their lowest levels in six years.

After his December inauguration Macri eliminated trade and currency controls as part of his plan to reset the economy. Growers quickly sold wheat stocks that had piled up after years of interventionist policies under the previous government.

Argentina, the world's 10th biggest wheat exporter, shipped 3.13 million metric tons of the grain in the first three months of 2016 versus 1.53 million in the same 2015 period, according to figures from Argentina's SENASA food inspection agency. Industry groups see production ramping up over the course of the year. 

Monsanto suspends sales of future soybean technology in Argentina

Monsanto said it will suspend sales of futures soybean technologies in Argentina because of the inability to reach a deal regarding the collection of royalties on the crops.

“The company plans to take measures to protect its current assets and will suspend launching any future soybean technologies in the country, including Roundup Ready 2 Xtend™ soybeans,” Monsanto said in a statement.

Monsanto also said it was optimistic a solution “would be secured to allow the legally operating soybean technology royalty system to continue uninterrupted following recent discussions between the Ministry of Agriculture for Argentina and the soybean industry stakeholders.”

Related: Monsanto rejects Argentine request in seed dispute

It said it remains committed to talking with Argentina to find a solution that will “help encourage and spur new investment in Argentina.”

Argentina is a leading world supplier of soybeans and is the top exporter of soybean meal.

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