Country News
China: Chinese corn imports could increase to around 20-30 MMT to cover increasing supply shortages, according to Reuters. This shift would come on the heels of a potential reduction in the country’s corn self-sufficiency rate to 80 percent, which is down from the current target of 95 percent.
Additionally on China: It is expected that the country will approve the importation of Brazilian corn at some point this year. The delay currently stems from sanitary concerns, and it is incumbent upon the Brazilian government to proved that there is no risk of fungal or insect contamination. As reported last week, China is also expected to approve the large-scale importation of genetically modified Argentine corn.
India: Indian corn prices have fallen because of a large depreciation in the value of the rupee, reports Reuters. As a result, Indian new crop corn for December shipment is now being offered at $235/MT, which is down from $245/MT last month. Comparitive Argentine corn prices In Southeast Asia were quoted at $245-$250/MT, while U.S. new crop corn is being offered at $275/MT. Despite the decline in prices, India is still likely to see a 40 percent reduction in exports this year, as much of the corn crop was damaged by heavy rains this year. Despite this, Malaysian buyers are looking to fill an order for 120,000 MT of corn from India.
Russia: Russia is expected to increase corn exports this year after reaping a record harvest, according to Bloomberg News. Exports will increase to an all-time high of 3 MMT, up from the 1.9 MMT exported last year. Moscow-based agricultural consultants OOO ProZerno have predicted the overall Russian corn harvest at 9.8-10 MMT, which is up from the 9.7 MMT predicted last month.
South Africa: Yellow corn futures have fallen to their lowest point in three weeks due to speculation that output could increase, reports Bloomberg News. Yellow corn for December delivery fell to $211/MT. The South African Crop Estimates Committee raised its forecast for yellow corn by 5.1 percent to 5.93 MMT.
Yemen: The FAO reports that Yemeni grain imports may increase by 7.1 percent over last year despite increased domestic production, according to Bloomberg News. Production is expected to total some 935,000 MT, which is a 2.9 percent increase over last year, and 13 percent higher than the five-year average. Of this total, some 460,000 MT is expected to be comprised of sorghum. Yemen may import 3.75 MMT of grain this year, which is up from 3.5 MMT last year. However, the continued deprecation of Yemen’s currency against the U.S. dollar in conjunction with an extrememly low level of foreign currency reserves has negatively impacted the country’s ability to afford its import requirements.