July 05th- Grains and Markets

July 05th 2022

Grains and Markets

National Holidays: Saturday, July 09th – Independence Day

River Parana Draft Forecast:
Basis INA Report of July 01st and Depth Report of July 05th

River level is descending. Nevertheless, the forecast is that water levels will not be as low as during 2021.

Diesel fuel shortage:
The Government and the State-owned company YPF are now announcing the arrival (import) of 10 shipments of diesel fuel over the next three months. This amounts to approximately 500 thousand cubic meters. Argentina has always had a local production deficit of diesel fuel and imports are usual. On the other hand, there are exports of other light petroleum derivates. This year (2022) due to very high foreign import prices caused by Black Sea hostilities and the strong currency devaluation imports have lagged behind the usual volumes. This shortage is the principal reason for Individual Truck Owners protests during last week. PAE (Pan American Energy) have installed enhanced cracking facilities over the summer months at the Campana refinery. They now are able to produce “Eurodiesel”. All Eurodiesel used to be imported.

Farmer’s protest:
Although the transport protest has been lifted, the farmers are still ongoing with their planned protest for July 13th. On that day they will not undertake any commercial activity. There will be no selling or trading of any goods. Farmers are also feeling affected by the shortage of diesel fuel and spares, especially tires. Farmers maintain that the lack of diesel and spare tires is causing a disruption in sowing and harvesting. It needs also to be said that a one-day halt in activities will not cause a significant change in cargo inflow to the ports.

Grains and Markets:
South Korea has purchased one Panamax lift of maize, optional origin. Arrival mid-October.
Pakistan has tendered imports for 500 thousand tons of wheat dates mid-August to mid-September 2022.
Saudi Arabia has purchased 495 thousand tons of wheat for delivery between November 2022 and January 2023.

Argentine Offshore oil exploration:
Offshore exploration for gas continues. YPF, in partnership with Equinor, will be completing the first drilling at the CAN-100 field (marked in yellow) by March 2023. The location of this field is 315 kilometers off Mar del Plata (please see map below). Due to this distance the project entails the whole installation to be afloat. There will be no pipelines to the coast. Storage will be using floating units and exports will be shipped directly from the source. There is also a great deal of expectation regarding sourcing light crude from the same field.

The port administration at Bahia Blanca has reduced the “entry” tariffs for vessels that stop at the Roads for lifting bunkers only.
This is an 18 per cent reduction, and it reflects as a reduction of about USD 3,500 on a Capesize, down from USD 26,000 to USD 22,500, and a reduction of USD 2,000 on a Panamax, down from USD 16,000 to USD 14,000.

Winds over the rest of this week. Bunker deliveries at Zona Comun:

STS BUNKER AT ZONA COMUN FOR NEXT DAYS: Wind gusts are forecast to get stronger towards the end of the week.

Will keep you posted.
Best regards,
Antares Servicios Maritimos S.A.

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