Country News
Algeria: The government increased the value-added tax on grain and feed products (corn, sorghum, barley, oats, DDGS, etc.) from 7 to 9 percent with the goal of slowing the pace of imports. U.S. sales of grain and feed products to Algeria had been expanding, amounting to around $200 million last year. (USDA/FAS)
Brazil: Conab will release its first planted acreage numbers for 2017’s winter corn crop on February 9 but it is still quite early in the Brazilian planting period. Two-thirds of USDA’s forecast for Brazilian corn exports this year is predicated on a crop just now being planted and susceptible to unknown weather events. Moreover, bearish forward pricing is signaling Brazilian farmers to cut back on inputs, which will make the crop even more susceptible to adverse weather. The key will be to watch weather in Mato Grosso, the largest safrinha corn growing region. (seeitmarket)
China: A plan to reduce the nation’s huge corn stock pile by converting it into biodegradable plastic (polylactide, PLA) products could upend producers and suppliers elsewhere in the world. China has been importing PLA products but the government is financing startup domestic production. (Reuters)
Colombia: Private exporters sold 105 KMT of corn to Colombia, which at 2.509 MMT of imports to date, is the fourth largest buyer of U.S. corn. (Platts)
Mexico: A ban on planting genetically modified corn is likely to continue for many years. It has been subject to a slow rolling legal battle with a court last week upholding a 2013 ban on even pilot plots due to environmental concern. (Reuters)