Country News
Brazil: A USDA/GAIN report details investment in Brazil’s grain handling infrastructure as it tries to move 98.5 MMT of 2017/18 corn production. Sixty percent of production moves by roads that are still partially unpaved. Private sector investment in infrastructure has increased over the past five years, particularly in the north where lower cost floating terminals could become more common. (World Grain)
China: China will suspend sales of state grain reserve corn at the end of this month because of the availability of the new crop being harvested. (Bloomberg; Reuters)
European Union: The variable import duty on corn and barley was automatically triggered lower to €5.61/MT because of the drop in the U.S. dollar. The tariff had been €10.95/MT. The duty is based on the relationship between a European reference price and the price of U.S. corn. (World Grain)
Kenya: Excess rain and armyworms have resulted in a corn harvest that is a quarter short of needs. The government is paying $377/MT for imported maize and then subsidizing its cost to millers to make flour affordable to consumers. Kenyan farmers are demanding the same kind of pay scheme. The government has offered to supply driers to farmers. (The East African)
Ukraine: Rains have slowed harvesting and damaged some corn, causing the price to rise to $160/MT for quality corn after hitting a three-year-low just a few weeks ago. This has made Ukrainian corn uncompetitive against Latin American suppliers in the traditional Middle East market except where smaller volumes (≤25 KMT) and/or proximity are important. Barley exports are down 10.5 percent overall but exports to China are up 87 percent (566 KMT) and sales to the EU are up 18 percent (220 KMT). (Platts; SyndiGate Media)
Zimbabwe: The government is claiming success from its Command Agriculture program whereby it has targeted increases in production area, including 400,000 hectares of maize. The result is a reported 1.1 MMT exportable surplus instead of the imports that were common in the past. The import substitution scheme will continue to advance production area in the future. (The Chronicle)