Country News
Argentina: The corn harvest has reached 97 percent and the Buenos Aires Grain Exchange estimates production at 31 MMT on a 6.02 MT/hectare average yield. That is a 9-10 MMT loss due to drought but exporters have already purchased 17.2 MMT despite trouble finding demand. The lack of demand for corn and barley have caused prices to drop with barley falling from $235/MT to $229/MT. The government forecasts 2018/19 corn planting on 9.35 million hectares. (WPI, Reuters)
Brazil: The full Supreme Court is expected to deliberate the legality of the government’s new minimum freight rate law, but it may not provide an answer until November or later. This uncertainty will continue to hang over the corn trade. The Matto Grossense Institute of Agricultural Economy (IMEA) says that farmer costs are rising due to the freight situation and exchange rates. Some farmers will wait until after the court ruling to sell (AgriCensus)
Eastern Europe: Romania and Bulgaria will have significantly higher corn yields this year due to the abundant rains and moderate temperatures experienced during June and July. Prices have fallen to levels unattractive to farmers. (WPI)
France: The corn crop is rated as stable headed into the autumn. (AgriCensus)
India: The agriculture ministry is forecasting a record year for grain production. Coarse grains production is forecast at 46.99 MMT, an increase of 5.5 MMT from 2016-17. The total includes 28.7 MMT of corn. (World-Grain)
South Africa: The Crop Estimates Committee defied expectations and left the maize crop production forecast unchanged at 13.2 MMT. (AgriCensus)
South Korea: Bucking the trend of other feed millers, KFA bought January corn and paid $210/MT. (AgriCensus)
Sub-Saharan Africa: Despite possessing nearly a fifth of global agricultural land, a combination of technical and economic issues results in only a few countries (South Africa, Zambia, Ethiopia, Uganda) being consistent producers in Sub-Saharan Africa (SSA). The region produces 14 percent of global coarse grains, with increasing maize output the dominant crop supplying nearly a fifth of all calories. Production is now threatened by the Fall Army Worm. Ethiopia is the dominant barley producer with demand growing for malt for beer production. Sorghum output is also growing. Barley imports are forecast at a steady 100 KMT. (FAO, OECD, USDA/FAS)
Tunisia: Despite tendering for barley when the market had slowed, Tunisia paid 20 percent more on its recent tender for that crop. (AgriCensus)
Ukraine: The corn sector placed hopes on rain to stop the fall in prices. (AgriCensus)