Country News
Brazil: After ruling out imposing tariffs on ethanol imports from the U.S. due to concerns about retaliation, the government will require that importers fulfill the same obligation (Resolution 67/2011) as domestic suppliers by maintaining reserve stocks equivalent to 8 percent of the prior year’s sales. (Reuters)
China: About 74 percent of the 453 KMT of 2011-12 corn offered for sale out of government stocks was purchased on May 11 at an average price of 1,331 yuan/ton ($193.17/MT). Almost 5 MMT of state owned corn will be offered for sale this week with 80 percent from the 2013 harvest and 20 percent from 2011-12. Government sales are pushing the corn price lower on the Dalian Commodity Exchange. Meanwhile, provincial support in Heilongjiang and Liaoning will shift higher subsidies to soybeans and away from corn in 2017. (Bloomberg)
EU: Consultancy Strategie Grains forecasts EU 2017 barley production 1.7 MMT lower to 59.6 MMT, and 2017 maize production lower by 0.3 MMT to 60.1 MMT. (Reuters) The German Agricultural Cooperative Companies Group (DRV) reduced the country’s corn production estimate by 17 percent to 3.74 MT and the barley output was cut by 2.75 percent to 10.6 MMT. (Bloomberg)
Kenya: After 36 KMT of reserve maize stocks were released to grain millers, the National Cereals and Produce Board said that just 4,500 MT of reserves were left, or less than a day’s worth of the country’s consumption amount. The maize was sold to millers at $244/MT, or half the current market price. (Bloomberg)
Malaysia: The competitive price of DDGS will spur further imports, possibly up to 80 KMT during 2017-18. (USDA/FAS)
Mexico: Sagarpa says that Mexico will import 3-5 MMT or 20-35 percent of its annual corn needs from Brazil in the medium to long term. (Bloomberg)