Country News
South Africa: South Africa has received its first shipment of imported corn in 2014, reports WPI. The South Africa Grain Information Service reports that 14,000 MT of Ukrainian yellow corn was imported, which represented the first South African corn imports since April 2012. Corn stocks are currently 37 percent lower than at this point in 2013 and stand at 675,000 MT. South Africa has exported 1.9 MMT of corn so far this year. Total corn production is estimated at 12.95 MMT, which is an 11 percent increase over the previous year and potentially the largest corn harvest since 1981’s record setting 14.4 MMT.
Russia/Ukraine: Western banks that participate in the global commodity trade have begun tightening payment procedures for grain deals made with Russia, according to Reuters. Banks are cutting down on “pre-financing” on grain deals and only provide payment once there is substantial proof that grain has been loaded onto a vessel. Similar measures were applied to grain deals made in Ukraine following its violent political turmoil. Global corn prices have increased by about 20 percent this year to over $5 per bushel in part due to fears that the supply of Ukrainian corn could be disrupted, especially if plantings decrease. As of now, grain shipments from Russian and Ukrainian ports remain undisturbed.