Wheat prices ease amid improved weather, rising dollar and strong Russian exports
The Euronext wheat milling futures DEC-24 contract price [Expana Code: WHT2] settled at €209.23/mt, down 3.23% week-on-week (w-o-w) at yesterday’s close, Nov.13, 2024. Global wheat prices softened this week, with multiple factors contributing to the downward trend. Key among these is the recent rainfall across the US Plains (which brought much-needed moisture to winter wheat crops that had been stressed by earlier dryness) and a strengthening US dollar which further pressured dollar-denominated wheat prices, reducing US export competitiveness on the international stage. Also, the USDA’s latest report (released on Nov.8) indicated a slight increase in global wheat production, largely due to a 2 million mt boost from Kazakhstan’s wheat harvest. This increase was only partially offset by reduced crop estimates in Argentina (-500,000 mt), the EU (-400,000 mt), Russia (-500,000 mt) and Brazil (-500,000 mt) leaving the net global supply slightly elevated. This overall uptick has meant limited immediate market impact but the region-specific declines hint at areas where wheat availability might tighten later in the season. Additionally, robust Russian wheat exports and a drop in Russian wheat export prices weighed down on European wheat prices, compounding the downward trend.
In Russia, wheat exports are projected to decelerate in November, though cumulative export volumes remain high, nearing or exceeding record levels. New industry regulations are reportedly impacting some Russian exporters who are finding it challenging to assume additional risks in the face of weaker prices. However, some market sources suggest that Russia’s November wheat exports could surpass initial forecasts, potentially reaching 3.7–4.1 million mt, which would be an increase from last November’s 3.2 million mt despite lower harvest and reduced carry-over stocks for the 2024/25 season. Concerns from Russian farmers regarding winter wheat in some regions, particularly in Krasnodar and Western Stavropol point to crop vulnerability to winter and spring frost damage. Though there is potential for pre-winter vegetation in these areas, crop health remains uncertain.
Market participants suggest that wheat prices could face continued short-term pressure due to incoming harvests from the southern hemisphere, which will add to global supplies. However, price support may emerge in the second half of the northern hemisphere wheat season, as the exportable wheat surplus in major producing regions is expected to decline. This potential reduction in available exports could tighten supply conditions.
EU launches anti-dumping investigation on Chinese choline chloride imports
On October 31, 2024, the European Commission (EC) initiated an anti-dumping investigation on imports of choline chloride from China following a complaint from European producers. The inquiry, filed on September 17, 2024, by Balchem Italia Srl and Taminco BV, alleges that Chinese choline chloride is being imported into the EU at unfairly low prices.
According to the complaint, the volume of Chinese imports has significantly increased, driving down prices and damaging the European market share and profitability. Moreover, the complainants argue that distortions in the Chinese market, such as subsidies for raw materials and energy, as well as government policies favoring local industries, prevent fair competition.
The EC said it will evaluate the evidence to determine if tariffs are necessary. The investigation will cover the period from October 1, 2023, to September 30, 2024. The investigation is expected to be concluded within a year, at the latest December 2025.
According to the complainants, rather than using China’s domestic prices, which are viewed as distorted, the investigation ought to refer to Mexican production data as a benchmark for fair pricing.
EuroTier: Cargill to launch dedicated specialty feed additive solutions unit
Cargill Animal Nutrition & Health will launch its new Micronutrition and Health Solutions (MHS) brand portfolio at EuroTier on November 13, Gilles Houdart, Global Additives Business Director, and now Global Micronutrition & Health Solutions Business Director, informed Expana.
The portfolio will regroup all of Cargill Animal Nutrition & Health’s specialty feed additive offerings, which the company has grown via its in-house R&D, but also with the acquisitions in recent years of companies like Diamond V and Delacon.
Houdart explained that eight brands have been designed to respond to customer’s’ demand for “products that perform, protect and preserve”, while addressing the big challenges in animal agriculture. MHS consists of species-specific solutions, he added.
Schouw & Co. considering possible separate listing of BioMar
Schouw & Co. has announced it will review a potential separate listing of its aqua feed subsidiary BioMar.
The Danish conglomerate expects to retain a majority stake in the unit if a listing proceeds, potentially in H2 2025, at the earliest. BioMar became part of the Schouw & Co. Group in 2005.
Jens Bjerg Sørensen, CEO of Schouw & Co., said: “During our ownership, BioMar has grown remarkably to become a leading global producer of quality feeds for the aquaculture industry. A potential separate listing of BioMar could provide the right platform for BioMar to continue its growth trajectory and at the same time offer investors the opportunity to directly invest in a leading pure-play aquaculture specialist in a growing market driven by megatrends.”
EuroTier: Pintaluba to build new organic acids factory; launches sensory additives spin-off
Expansion plans are underway for Adiveter, part of Spain’s Pintaluba Group, Andreu Pintaluba Mitja, General Manager of Andrés Pintaluba, told Expana at EuroTier in Hannover, Germany.
Mr. Pintaluba Mitja said that Adiveter has recently received final authorizations from the local authorities to proceed with the construction of a new plant in the Reus area near Barcelona sometime in 2025. Targeted at feed safety, Adiveter product lines are formulated with organic acids in addition to other active substances.
He said the new factory is expected to be operational by the end of 2026.
LINNEOS, Pintaluba Group’s business unit was officially launched as a spin-off business at EuroTier, Mr. Pintaluba Mitja added. LINNEOS specializes in the design, formulation and manufacture of sensory additive products that help increase feed intake.
Thanks to the spin-off, LINNEOS will be more dedicated to its line of products, similar to the way BIŌNTE Animal Nutrition was formed in 2022 to focus on its line of mycotoxin binder products, he explained.
Riverside to sell flavonoid and vitamin B12 derivatives producer HTBA to Miura Partners
A European branch of investment firm The Riverside Company has agreed to sell HealthTech BioActives (HTBA) to Miura Partners, a private equity firm that invests in Southern Europe.
HTBA is a Spanish manufacturer of citrus flavonoids and derivatives of vitamin B12 for the pharmaceutical, nutraceutical, food and beverage sectors. The company also produces intake promoters, sweeteners, and natural citrus flavonoids premixes for the animal nutrition sector.
“Riverside invested in HTBA in December 2019 and has since significantly increased the company’s manufacturing capacity, widened its international distribution and enhanced the firm’s R&D capabilities and expertise, leading to a pipeline strongly focused on new products. The company’s headcount has almost doubled during Riverside’s ownership,” Riverside said.
HTBA recently completed the construction of a new manufacturing unit at its facility in Beniel, Spain, primarily to produce vitamin B12 derivatives.
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