Country News
Argentina: Despite recent rains, corn output will come in below expectations due to delayed planting. The agriculture ministry replaced a complete corn export prohibition with a foreign sales limit of 30 KMT/day but farmers continued to object. The 30 KMT/day limit constrained ships that can hold 45 KMT and farmers get paid faster by exporters than by domestic buyers. Due to inflation, getting paid 30-40 days later means losing money. Besides, ending stocks are higher than in 2017-2019 when there was no export restriction. The Argentine Rural Society and the Argentine Rural Confederation both said their farmers would continue to withhold corn from the market. Subsequently, the 30 KMT/day limit was removed, and the government says it will instead monitor daily market conditions. The Rosario Grain Exchange lowered its estimate for 2020/21 corn production by 2 MMT to 46 MMT. (Reuters; AgriCensus)
Brazil: The national agricultural agency Companhia Nacional de Abastecimento (Conab) reduced its forecast for corn production by 276 KMT to a total of 102.313 MMT in 2020/21. However, the agency is believed to be slower at adjusting crop sizes to weather conditions. ANEC, the association of Brazilian exporters, raised its forecast of January corn exports to 1.175 MMT, up slightly from the 1.174 MMT exported last year. Corn exports in the first week of January hit 641,315 MT. (Reuters; S&P Global Platts; AgriCensus)
China: The agriculture ministry raised its estimate for corn imports in 2020/21 by 3 MMT to 10 MMT. The Ministry of Agriculture and Rural Affairs (MARA) says that pig production is expanding faster than previously thought. Feed demand is rising even as industrial use of corn is falling due to high prices. Meanwhile, USDA raised its forecast for China’s corn imports by 1 MMT to 17.5 MMT. MARA approved two new GMO corn events for imported corn and was set to approve a new domestic GMO corn variety for local production. The Dalian Commodity Exchange increased the margin requirement on speculative trades in corn from 9 percent to 11 percent. The margin requirement for hedgers remains at 7 percent. The move came after the May contract hit 2,911 yuan/MT ($449/MT). (Reuters)
Russia: The agriculture ministry will set the barley export tax at €10/MT and the corn export tax at €25/MT beginning 15 March. (Reuters)
South Africa: Persistent rains are raising the trade’s concerns about adverse quality impacts on the current corn crop. (AgriCensus)
South Korea: FLC purchased South American corn at $295.50/MT. (AgriCensus)
Turkey: The state’s Turkish Grain Board (TMO) bought 155 KMT of corn at an average price of $266.96/MT and purchased 130 KMT of feed barley. (AgriCensus)
Ukraine: The trade associations for livestock and poultry growers asked the government to limit corn exports in 2020/21 to 22 MMT to avoid a shortage of animal feed. The government has said it will not change its grain export policy. Corn production was down 18.3 percent from a year earlier and thus far, corn exports are 21.2 percent lower than a year ago. (APK-Inform; Reuters)