Country News
Argentina: The corn harvest reached 90 percent with yields this year below average. The government had to conduct emergency dredging at ports and low river levels have caused upriver basis levels to fall. (AgriCensus)
Brazil: President Michel Temer signed the new freight law into effect and the Supreme Court will hear arguments against the higher transport costs late this month. The National Grain Exporters Association (ANEC) estimates that the law will add $20/MT to costs and impose an $18 billion burden on society. The rates will change every six months (July 20 and January 20) based on decisions by the National Transport Agency (ANTT). Large commercial operations have begun assembling their own trucking fleet to bypass effects of the law.
Separately, rains have slowed the harvesting of second crop corn leading livestock firms to seek corn from alternate origins. Higher feed costs will force price increases for livestock products. The federal crop agency CONAB’s August estimate of the safrinha (second) corn crop is 55.35 MMT, down 17.85 percent from the July estimate and bringing the total 2017/18 corn production estimate down to 82.18 MMT, a 16 percent reduction from the previous year. The corn export estimate remained unchanged at 30.83 MMT though several private analysts are pegging it at 28 MMT. (AgriCensus; SPGlobal; Reuters)
China: Last Friday’s corn auction sold 1.1 MMT, or 29 percent of the volume offered. Sales in Heilongjiang province slowed as buyers resisted the higher prices. China sold 1.533 MMT of corn at its latest auction at an average price of ¥1,544/MT ($223.78/MT). The National Grain Trade Centre said it sold 38.43 percent of the total corn offered. (AgriCensus; Reuters)
EU: The drought has caused grain prices to skyrocket. With corn prices jumping by €30/MT to €195.25/MT ($221.95/MT), demand for DDGS has increased. (SPGlobal)
Russia: With a drought-stricken crop, Russia’s barley exports fell by two-thirds on a week-by-week basis and since 1 July they are down 12 percent on an annual basis. Corn exports, which have yet to properly get started, are down 35 percent from a year ago. (AgriCensus)
South Korea: Nonghyup Feed Inc. (NOFI), the largest feed miller in South Korea, passed on purchasing corn this past week. (AgriCensus)
Taiwan: MFIG bought corn this past week for importation. (AgriCensus)
Ukraine: Recent rains have helped but the impact of heat and dryness on the corn crop remains uncertain. Corn exports for 2018/19 hit 1.1 MMT, a 3.3 percent increase year-on-year. (AgriCensus; Reuters)