Country News
Brazil: USDA may lower its estimate for Brazilian corn exports this year given that its export pace is below the trend necessary to meet the projection. However, Conab estimates new crop production at 83.8 MMT, up 25.9 percent. The average estimate of traders indicates an 89.2 MMT crop in 2016/17. Corn exports are seen rising to 24 MMT. (Bloomberg)
Canada: Rain and snow are delaying the oat harvest and the rest is lower production (-13 percent), poorer quality and higher prices. Since the end of September, oat prices have rallied from seven-year lows to the larges harvest rally in a decade. Meanwhile, U.S. oat production was harvested earlier than usual and is generally better quality. (Bloomberg)
China: The Ministry of Agriculture’s outlook committee has lowered the forecast 2016/17 corn crop by 1 MMT to a total of 214.6 MMT. Corn starch and alcohol refineries have boosted output on higher profits via lower priced corn. (Bloomberg) China National Grains and Oils Information Center has already lowered projected corn consumption in the new marketing year because prices have risen due to recent new rules on trucking and the consequent increased use of imported sorghum and barley. Projected sorghum imports were raised by 1 MMT to 4.5 MMT. (Reuters)
China is now aiming to double ethanol output from the current 2.1 MMT to 4 MMT by 2020 in order to have 15 percent of energy derived from non-fossil fuel sources. However, it will still control the amount of grain used for ethanol unless it is unfit for human consumption. (Reuters) China’s Commerce Ministry has proposed and the National Development and Reform Commission is receiving public comment on allowing foreign investment in edible oils processing and fuel ethanol production. (Bloomberg)
Peru: USDA reports that Peru was the single largest purchaser of corn this past week, 426 KMT, which was that country’s largest single-week purchase on record. (Reuters).