Country News
Brazil: Corn export commitments and actual exports are running far enough behind last year’s levels that USDA seems likely to lower its estimate further in its November 9 WASDE report. (WPI) Stubbornly high corn prices and slack demand are also adversely affecting the country’s poultry exports, with Brazil’s world beating poultry export company BRF SA stating disappointing third quarter profits. (Reuters)
Canada: The Ontario Ethanol Growth Fund, which has paid out C$520 million since 2005 for the construction of ethanol plants, appears unlikely to be extended at the end of this year. (Postmedia)
China: With a corn stockpile that has doubled in size since 2009, the government will use subsidies and tax rebates to move excess supplies into the export market. (Newton Daily News) The Northeast province of Jilin will provide nearly $30/MT subsidies to 22 corn processors to help farmers sell their harvest, per the Jilin Provincial Grain Administration. Meanwhile, a survey of Chinese farmers by SGS SA concludes that the cut in subsidies will cause corn production to fall by 7.3 percent in 2017, versus a government estimate of a 5.4 percent drop. (Bloomberg News)
Israel: Private buyers closed yesterday on a purchase of approximately 120 KMT of optional origin corn. The purchase price was between $175 to $179/MT C&F and shipment periods will vary based on origin. If from the Black Sea, it will be in three shipments between late December and early March. South American suppliers could deliver it 20 days earlier than that and U.S. suppliers would be 15 days quicker. (Reuters)