Market Perspectives – August 26, 2021

Country News

Argentina: The Buenos Aires Grain Exchange (BAGE) reports that 98.1 percent of the corn harvest is complete, and output is expected at 50.5 MMT. BAGE believes the upcoming planted area for corn will reach 7.1 million hectares. Continued dryness over the next six months will reduce the size of the upcoming corn crop and continue to pose shipping problems on the Parana River. Corn planting occurs in September and October, but the Rosario Grains Exchange says La Nina could cut rainfall by 20-30 percent. Meanwhile, cargo capacity on the Parana is reduced 18-25 percent per ship. The government has created a new river authority to control this key waterway, though some in the trade fear nationalizing the Parana will invite bureaucracy and cost increases. (Reuters; AgriCensus)

Brazil: Corn exports were 800 KMT in the third week of August, with around 3 MMT shipped in the month thus far. Daily volume moved 7 percent lower, and exports remain subdued relative to last year when volume was double. Anec expects August corn exports to reach 4-4.5 MMT at the same time corn imports daily are up 65 percent from a year earlier. The government will waive taxes on corn imports. Buyers and sellers are reluctant to conduct transactions with corn prices where they are and CONAB concedes the quality and quantity of domestic corn is inadequate. Harvesting of the second corn crop is at 75.5 percent, versus 81.6 percent the same time a year ago. Asian buyers are waiting for the harvest to lower U.S. corn prices. IMEA reports that there have been some favorable rains; AgRural said summer corn planting will start soon but cold waves could delay planting in the south. (Reuters; AgriCensus)

Jordan: The state grains buying agency tendered for 120 KMT of feed barley. (AgriCensus)

Mexico: The consultancy GCMA says Mexico imported 10.32 MMT of corn during January-July. (AgriCensus)

Philippines: San Miguel Corporation purchased 160 KMT of Australian barley. (AgriCensus)

South Korea: There was 135 KMT of corn booked on an optional origin basis and FLC purchased corn privately at $320/MT CFR and KFA paid $320.75/MT for corn in a private purchase. (Reuters; AgriCensus)

Tunisia: The government buying agency ODC tendered and purchased 245 KMT of feed barley for late September/October delivery. (Reuters)

Turkey: Government agency TMO awarded 270 KMT of feed barley to local companies. (AgriCensus)

Ukraine: The barley harvest is 99 percent compete and while weekly barley exports rose, corn exports fell to 5 KMT. (AgriCensus)

Zimbabwe: Agriculture Minister Anxious Masuka says his country will increase its strategic grain reserve to 1.5 MMT of maize, up from 0.5 MMT. Corn production this year will be 900 KMT, with another 900 KMT imported, which is up from 800 KMT last year. (Daily News)