Market Perspectives – April 28, 2022

Country News

Argentina: With half the corn crop harvested, FOB basis had hit a seasonal low but strong demand by importers coupled with farmer reluctance to sell has driven it back above Chicago futures. While other forecasters shoot below USDA’s forecast of 51 MMT of corn production, Argentina’s Ministry of Agriculture says the crop will be 57 MMT. (Reuters; AgriCensus)

Brazil: The safrinha corn crop is challenged by overly dry conditions in Mato Grosso while rain damages the crop in Paraná. (AgriCensus)

China: COFCO has been active in booking barges for the corn it is buying in the U.S. (Reuters)

Kenya: As the largest maize importer in Sub-Saharan Africa, Kenya will be mostly adversely impacted by the reduced corn production in the region. The problem is exasperated by Kenya’s refusal to accept GMO corn, which otherwise could be supplied by South Africa. Over 80 percent of South Africa’s corn is genetically modified. Kenya will need 700 KMT of corn, or about 21 percent of the region’s import demand. (The Conversation)

Russia: The export tax on barley was lowered by $2.70 to $73.30/MT giving it an indicative price of $289.80/MT, and the export tax on corn was lowered by $11.20 to $54.90/MT for an indicative price of $263.50/MT. (Reuters)