Market Perspectives – August 20, 2020

Country News

Argentina: Corn exporters face a “negative margin” as farmers withhold their crop and the higher FAS price makes it difficult for them to meet their existing corn export contracts. Meanwhile, the Buenos Aires Grain Exchange forecasts 2020/21 corn planted acres at 6.2 million hectares, which is slightly below last season’s 6.3 million. Conditions are too dry in the northern and southern grain belts. (AgriCensus)

Australia: Canberra has appealed to Beijing to end the 80.5 percent AD/CVD tariffs on its barley shipments. The punitive tariffs were applied amid soured diplomatic relations and now China is probing the application of new tariffs on Australian wine as well. (Refinitiv)

Brazil: Indigenous protesters have put up roadblocks on a key corn transport highway.  They are protesting the government’s inadequate Covid-19 protection. Nonetheless, corn exports hit a record in August. (AP News; AgriCensus)

China: The latest weekly auction of government-stored corn was again 100 percent sold out. The highest and average ($269.86/MT) bid prices at the 20 August auction continued to decline but the lowest bid prices have been rising. Meanwhile, more corn is being imported to meet the feed demand of expanding pig and poultry production. Feed demand in July grew at the fastest rate in 10 years. (National Grain Trade Center; Reuters)

EU: A German co-op has trimmed its forecast for barley production after ‘extreme weather.’ French corn conditions have worsened following a heat wave. (AgriCensus)

South Korea: MFIG, NOFI, Kocopia all passed on making corn purchases. (AgriCensus)

Taiwan:  MFIG bought corn from Posco at $185.45 over the March contract. (AgriCensus)

Ukraine: The barley harvest has wrapped up and output missed USDA’s forecast, according to the Agriculture Ministry. Also, dry weather has corn output this season at 35 MMT and not the 39 MMT originally forecast. As of 19 August, corn exports are at 502 KMT, versus 1.68 MMT a year ago. (AgriCensus; Reuters)

Turkey: The Turkish Grain Board again tendered for barley imports. (AgriCensus)

Thailand: The Thailand Feed Mill Association bought barley for December delivery. (AgriCensus)