Country News
Argentina: The Buenos Aires Grain Exchange (BAGE) rated the corn crop 24 percent good/excellent, up 2 percent from the prior estimate. BAGE trimmed their corn production forecast by 1 MMT from the prior 47 MMT estimate. January rains improved prospects for corn in the three primary production provinces (Buenos Aires, Cordoba and Santa Fe). However, February is the critical grain fill month and conditions have turned back dry offset by more reasonable temperatures. The export chamber CIARA says truckers ended their 20-day old strike of some grain loading ports. Jorge Chemes, president of Confederaciones Rurales Argentinas, says the government has backed down from its plan to increase export taxes or make other kinds of interventions. (Reuters; Refinitiv)
Brazil: The consultancy Datagro forecasts 2020/21 corn production at 110.06 MMT, up 130 KMT from the previous estimate of 109.93 MMT. CONAB’s official estimate is 105.5 MMT and FAS lowered its estimate for 2020/21 corn production to 105 MMT, all despite a 1 million hectare increase in safrinha planting area. USDA pegs it at 109 MMT, though 40 percent of the second crop will be planted outside the optimal window. EMBRAPA approved the use of the bioinsecticide Aera for use in controlling Fall Army Worm attacks on corn. (Reuters; FAS GAIN; The Rio Times)
China: The Agriculture Ministry expects corn demand and domestic prices to remain high through 2021 as buyers continue to build stockpiles concurrent with increased feed demand from rising pig herds and poultry growers. Consequently, it also expects corn prices to remain high in 2020/21. The FAO slashed its estimate of China’s 2021 corn inventory by 54 MMT, down to 139 MMT. USDA forecast China’s corn imports at a record high 24 MMT, a 37 percent increase from its January estimate. China will make its first importation of barley from Uruguay. Meanwhile, the Agriculture Ministry says that it found eight companies and research institutes illegally working on genetically modified corn events. (Reuters; World Grain; AgriCensus)
EU: France AgriMer estimated 2021 barley area at 1.2 million hectares, down from the 1.26 million hectares foreseen in December. That is a 3.1 percent increase from 2020 but still 9.1 percent below the five-year average. EU corn imports will be down 27 percent year on year to 10 MMT, though current prices are currently high. (Reuters; AgriCensus)
Jordan: MIT purchased 60 KMT of barley for delivery in August after paying $260/MT CFR Aqaba. (AgriCensus)
Saudi Arabia: The government is shifting responsibility for barley imports and the impact will be overseas purchasing falling from 7.6 MMT last year to 6.2 MMT in 2020/21. (FAS GAIN)
South Korea: Korean feed buyers are hoping that upcoming Argentine corn supplies will temper high prices in Chicago. The Major Feed Group (MFG) sought two 55 KMT – 70 KMT cargoes for delivery during May 20 to June 13. Nonghyap Feed Inc may also be tendering. NOFI purchased corn from Viterra in a private transaction. (SPGlobal/Platts; AgriCensus)
Turkey: Corn production in 2020/21 will be 7.1 MMT, up 1.1 MMT from a year earlier. As a result, corn import needs will be lower. Barley production will rise by 200 KMT to 8.1 MMT as farmers switch from the higher production cost of wheat. (FAS GAIN)