Country News
China: Corn futures and spot prices hit six year lows on government liquidation of temporary reserve stocks. (Reuters) CNGOIC says that feed mills bought 1.2-1.3 MMT of corn, sorghum and barley over the past two weeks, most for May-June delivery, due to concerns about domestic corn quality. (Bloomberg)
The leader of China’s corn starch association, Zhu Yongsheng, says that corn is uncompetitive for export and feed demand is satiated, leaving the expanded production of fuel ethanol as the key to reducing corn stockpiles. He sees ethanol demand rising to 10-12 million tons for blending into gasoline. Li Qiang of JC Intelligence says China’s fuel ethanol output could reach 20 million tons by 2025. (Bloomberg)
Separately, Chinese Premiere Li Keqiang calls for supply side reforms of agriculture and improvements in quality. The National Development and Reform Commission says that corn and soybean subsidy policies will be linked and market-oriented reforms will be pushed forward. (Bloomberg)
Indonesia: Michael Michalak, regional managing director of the U.S.-ASEAN Business Council says that Jakarta had been liberalizing and President Joko Widodo had solicited increased foreign direct investment – but now the government has imposed non-tariff barriers on agricultural goods such as imported corn. Trade Ministry official Oke Nurwan says that favoring domestic sources over imports is not protectionism. (Bloomberg)
Mexico: The USDA FAS Attaché sees corn output declining 6.4 percent to 25.25 MMT, though imports will likely remain unchanged at 13.4 MMT. Shipments from the U.S. are unchanged at 13.2 MMT. (Bloomberg)
Saudi Arabia: Reports indicate that 1.5 MMT of corn, sorghum and barley were purchased for May-June delivery. (Bloomberg) Saudi Arabian buyers also purchased 18,000 tons of DDGS, a 114 percent increase over 2014. (World Grain)