Country News
Israel: A private Israeli company purchased 100,000 MT of corn last week that was booked at about $1.40/MT over Chicago corn futures, according to WPI. Feed grain deficit countries, such as Israel and Japan, commonly have an established seasonal purchasing program. Increases in buying from such countries can occur when prices are low, which occurred several months ago. Such buying fueled a rebound in prices. The rate of U.S. corn exports may now slow since CBOT corn futures have rallied back above $5.00 per bushel and weather concerns for the 2014/15 season are presently limited.
Sudan: The United States had donated 47,000 MT of sorghum to Sudan. The distribution will occur mostly in the Darfur region and will be administered under World Food Program (WFP). This quantity is sufficient to feed approximately 300,000 people, according to the WFP.
Ukraine: USDA estimates that Ukrainian corn production in the 2014/15 season will be 26 MMT, approximately a 16 percent decline from the 2013/14 production level of 30.9 MMT. The decline in production is attributed to the reduced value of the local currency increasing input costs. Please note that while the reduction in Ukrainian corn production is sizable, total global production in the 2014/15 season is basically unchanged and global ending stocks of corn are presently forecast to increase by 13 MMT, or approximately 8 percent.
Zimbabwe: Corn farmers in Zimbabwe seem intent to sell their production to private millers rather than under the more normal route of selling to the government, according to Soyatech. Government prices are more than $50 per ton below prices in the private sector. Local farmers point out that it makes no sense for the government to pay a higher price for corn imports than it is paying for local production.