Market Perspectives – December 9, 2021

Country News

Argentina: One-third of the crop is planted and the Buenos Aires Grain Exchange increased its corn crop forecast to 57 MMT on a 2.8 percent increase in sown area. Farmers are rushing forward with planting to avoid harm from expected late season dryness, though some will plant later to try and avoid current dryness. (Reuters)

Brazil: Summer corn planting in the center-south reached 91 percent but rain distribution in Rio Grande do Sul has been uneven and AgRural says there will be some losses if moisture remains too light in Santa Catarina and Parana. It also expects the country’s second crop of corn to see a 6 percent increase in area. IMEA increased its estimate of Mato Grosso corn output and CONAB forecasts total new crop corn production at 117.18 MMT, a 500 KMT increase from earlier and still below USDA’s forecast of 118 MMT. (Reuters)

China: The National Bureau of Statistics estimates 2021/22 corn production at 272.6 MMT, up 4.6 percent from a year ago and a new record. Planted area was up 5 percent but yield was down 0.4 percent from a year earlier. (Reuters)

EU: France AgriMer kept its estimate of corn and barley stocks unchanged but increased its estimate of corn production by 200 KMT. (Reuters)

India: The market support price (MSP) for barley was raised by $6.58/MT to a total of $313/MT. (Grain Central)

Jordan: Government agency MIT purchased 60 KMT of barley for July 2022 delivery. (AgriCensus)

Mexico: The purchase of 1.844 MMT is the country’s fifth largest single day purchase of corn on record. Imports of corn from the U.S. are at a record. (Reuters)

Philippines: There is a tender for 125 KMT of barley with the deadline for bids on 9 December. (Reuters)

Russia: Corn exports will be limited by an export tax that in mid-December could reach $55/MT. Exports will be limited in 2022 as well, especially if South American production underperforms and prices rise. (Reuters)

South Africa: Good rains have enabled maize planting to progress two to four weeks ahead of schedule. (Grain SA)

South Korea: MFIG purchased 130 KMT of corn, and Kocopia sourced corn in a private deal with Ukraine (AgriCensus)

Taiwan: MFIG purchased 65 KMT of corn for March 2022 delivery. (Reuters; AgriCensus)

Ukraine: Corn is 90 percent harvested and is the supply abundant despite the cumulative average yield being lower than in 2018. Cash corn basis is running high. (Reuters)