Country News
Brazil: Government grain agency Conab forecasts an increase in corn production to 88.6 MMT based on a 1.4 percent expansion in production area. Domestic demand for corn will increase to 10 MMT based on 3.75 MMT now projected to be consumed by the ethanol industry. Meanwhile, USDA’s WASDE cut total South American corn production by 6 MMT. Chinese tariffs on U.S. corn could force a tightening of Brazil’s export logistics, pushing usual sales of 3-4 MMT to countries like Iran, Egypt and Japan over to American suppliers. (AgriCensus)
China: The National Grain Trade Centre will release 7 MMT of corn for auction this week in the four major corn-producing provinces. Some of the corn dates back to 2013 and auction minimum prices have been discounted by around a fifth from current market prices of around 1,760-1,780 yuan ($280/MT). (Reuters)
EU: Corn imports were 340 KMT last week and have hit 13.2 MMT thus far, a 51 percent increase versus last year at this time. (AgriCensus)
Russia: A vessel carrying 60 KMT of barley destined for Saudi Arabia ran aground in the Bosporus, causing damage. Supplies of barley are already tight and with prices at $239.75/MT FOB Novorossiysk, it is selling at a premium of $29.25/MT over 12.5 percent milling wheat. (AgriCensus)
South Korea: The corn processing association KOCOPIA purchased a panamax-sized vessel of corn from the PNW for $225/MT. It was a direct purchase since tenders are believed to be resulting in higher prices. The Nonghyup feed group will be challenging that theory by tendering for a shipment of corn for delivery during last half July that it hopes will be closer to $218-220/MT. Corn imports will be higher in 2018/19 due to the government having destocked surplus rice. (AgriCensus; USDA/FAS)
Turkey: Government consideration of a reduction or elimination of the corn import duty remains open given concerns about food inflation. Importers recently cancelled a tender for $149 KMT of corn because prices loaded with the tariff were considered too high. (AgriCensus)