Market Perspectives – December 20, 2018

Country News

Brazil: Rainfall expected over the next week is easing concerns over pollination and fill-stage problems on the approximately 50 percent of the first crop corn acres that are at that point in development. (Reuters)

China: At 257.3 MMT, the 2018 corn crop was smaller than the 2017 crop. Corn imports are likely to resume in January with the U.S. expected to supply 3 MMT of the 7.2 MMT annual quota. An official from China’s National Development and Reform Commission says that impacts from the African Swine Fever outbreak have been minimal thus far but there could be a spike in pork prices if the disease spreads farther. It could also impact feed demand depending on pig stock levels and producer margins. (AgriCensus; Transport Topics; Bloomberg)

Jordan: Falling prices have encouraged Jordan to purchase its third cargo of barley in a month, this time from Russia. (AgriCensus)

Mexico: Importers bought 426,800 MT of U.S. corn with the bulk of it scheduled for delivery in 2018/19. (Reuters)

Paraguay: Corn production in eastern Paraguay received persistently below-normal moisture thus far in December; however, the forecast calls for replenishing rainfall. (Reuters)

South Korea: The availability of Ukrainian corn on the market enabled KOCOPA to buy corn at $213/MT. However, it skipped on a tender that only saw higher prices. Meanwhile, NOFI picked up U.S. feed grade quality wheat. (AgriCensus)