Market Perspectives – January 21, 2021

Country News

Argentina: After port workers and labor at crush plants settled their wage demands, and after farmers achieved an end to corn export limitations, now picketing independent truck drivers are feared to be slowing grain flows. They are blocking highways and creating uncertainty. Nonetheless, farmer new crop corn selling is at its highest level since more than a year ago, attracted by good prices and fear of an export tax. (Refinitiv)

Brazil: The exporter association ANEC increased its assessment of January corn exports to 2.398 MMT from an earlier estimate of 1.027 MMT, a 36 percent increase. Meanwhile, the consultancy Datagro reduced its estimate of corn production for this marketing year to 109.93 MMT, a 4.11 MMT reduction in part due to a 0.15-million-hectare reduction in production area. Instituto The Mato-grossense de Economia Agropecuária (IMEA) says that corn sales by farmers are at 66.8 percent, a slight increase from December but ahead of the long-term average of 45.4 percent. (Reuters)

Jordan: The government’s procurement agency MIT paid $262/MT for barley for July delivery, a price jump. (Agricensus)

Mexico: The government intends to gradually replace imported corn with domestic non-GMO corn. (AgriCensus)

Philippines: Importers are seeking 80 KMT of barley for delivery in April/May. (AgriCensus)

Russia: The government will impose an export duty of €25/MT on corn and €10/MT on barley starting March 15th. The goal is to preserve domestic stocks to reduce prices paid by consumers. (Refinitiv)

Saudi Arabia: The Saudi Grains Organization (SAGO) issued a tender for 480 KMT of animal feed barley. (Reuters)

Taiwan: MFIG tendered for 65 KMT of optional origin corn for March-April Delivery with the U.S. being the lowest cost source. (AgriCensus)

Ukraine: Exports are down an average 18.6 percent for this 2020/21 marketing year with corn exports at 10.52 MMT (down 25 percent) and barley exports at 3.89 MMT. The economy ministry along with agricultural unions will decide on 25 January whether to limit corn exports to 22 MMT as requested by the animal feed and meat producers. The consultancy APK-Inform says that corn asking prices are $23-$26/MT higher in January, reaching $256-$264/MT FOB Black Sea, a level that is $4-$6/MT higher than in 2014. (Refinitiv; AgriCensus)