Country News
Brazil: The government will offer 500 million reals ($159 million) in subsidies to help corn producers market their 2016/17 crop. Some traders have used the grants to subsidize the cost of moving the corn from production areas to export facilities. Meanwhile, the government agency CONAB will acquire up to 1 MMT of corn in Mato Grosso via an auction where it is offering 18.87 reals (USD$ 6.10) per 60-kg bag (approximately USD $2.60/bushel; $101.66/MT). (Reuters)
China: The National Bureau of Statistics says that corn production area will be reduced by 4 percent in 2017. Overall output will fall by 5.5 percent to 219.6 MMT, the smallest crop since 2012. (Reuters)
The Chinese government removed the cap on corn refining capacity and state-owned COFCO, which can currently process 6 MMT of corn per year, says it intends to expand capacity by 67 percent to 10 MMT by 2020. COFCO’s general manager, Tong Yi, says China’s overall corn processing capacity will expand by 40 percent from 50 MMT currently to 70 MMT next year.
To further help the country cut through huge corn surpluses, Henan Tianguan Group believes the government may increase the fuel-ethanol production target. (Bloomberg; Reuters)
Korea: On April 18, the country’s Major Feedmill Group (MFG) bought 60 KMT of corn out of 210 KMT tendered for optional origin delivery. Meanwhile, the Korean Feed Association issued a tender for 130 KMT of corn to be sourced optional origin. Final bids were due on that request by April 19. (Reuters)
Turkey: A tender was issued for 118 KMT of corn for loading during April 25-May 7. The Turkish Grain Board wanted all bids delivered no later than 2 PM on April 19. (Reuters)
Ukraine: Sharply colder air, snow and sleet may delay the planting of corn, according to UkrAgroConsult. The weather deterioration may mean that the country’s misses the government’s forecast of 4.507 million hectares planted to corn. (Reuters)