Country News
Argentina: Concerned that farmers will grow six MMT less corn and cause a livestock feed shortage, the Argentine government plans to offer farmers interest rate subsidies (600 basis points) to maintain its production rather than switch to soybeans. However, increased profit from soybeans may be more attractive to farmers than increased debt at 19 percent interest rates. It is export restrictions and not credit that makes corn less profitable to produce. (Bloomberg)
China: Zhongna Wang of Zhasoshang Futures says that Beijing revising its corn price support program could impact the volume of sorgrum that the country imports. He says that China will have imported a record 10 MMT of sorghum in 2014/15 as a result of the current high guaranteed corn price. (DTN)
Zambia: The Food Reserve Agency will purchase just 500,000 MT of corn from farmers, versus the one million MT last year, due to the drought-induced drop in production. This will cause a drop in exports and force other countries in the region to import more expensive corn from elsewhere in the world. (Dow Jones)
South Africa: The country’s Crop Estimates Committee said this week that wheat production would be at a five year low and yet the price of white corn deliverable December fell 1.1 percent in price to 3,085 rand ($233) per MT. (DTN)