Country News
Brazil: Corn production is on pace to reach a record 95 MMT, up 30 percent from last year. The second crop currently being harvested may have some quality issues but overall is in good condition. However, storage options may be limited. (USDA/FAS)
China: Only 120 KMT of corn was sold on June 22 out of the 1.3 MMT offered. Out of the 14 auctions since May 3, over 23 MMT of reserve corn has been auctioned and at a lower average price than a year earlier. The average auction price ($199/MT; $5.06/bu) is 39 percent below the original acquisition cost, excluding storage and interest costs. Last year the government auctioned 20 MMT of corn and directly sold an additional 20 MMT. Notably, corn prices remain relatively high in the grain deficit south where imports of corn, sorghum and barley should be attractive. (Bloomberg; Brokers Reports)
Mexico: The Energy Regulatory Commission approved a plan to expand the ethanol blend requirement to 10 percent. The Association for Sustainable Movement says it will require a $1 billion investment to build 10 plants over the next five years to refine ethanol. Separately, 120 KMT of corn was purchased this week from the U.S. and nearly 10 MMT of the 13 MMT of American corn purchased thus far this year has been shipped. (Bloomberg; Platts)
Paraguay: Thousands of farmers are protesting a government plan to impose a 15 percent export tax on corn, soy, and wheat exports. A vote on the measure will occur next week in the Congress and is backed by President Horacio Cartes’ party. (Reuters)
Ukraine: UkrAgroConsult says the corn crop is in good condition due to optimal growing conditions for plant growth, development, grain formation and filling. (Bloomberg)