Market Perspectives – July 16, 2020

Country News

Argentina: Agriculture Minister Luis Basterra tamped down rumors that his government would increase the export tax on grains due to struggling revenues. (Refinitiv)

Brazil: July/August/September corn exports are ‘done’ as supply tightens. (AgriCensus)

China: Importers purchased 3.2 MMT of corn from the U.S., including a record single day purchase. Overall Chinese purchases from the U.S. could hit a record. The government sold another 4 MMT of corn at auction at an average price of CN¥1,944/MT ($277.93), or roughly double U.S. prices. It also investigated and found no basis for complaints about the quality of corn coming out of Northeast warehouses.  (Refinitiv)

EU: French grain loadings are dominated by barley headed for China. (AgriCensus)

Iran: State-owned animal feed importer SLAL issued a tender for 200 KMT each of corn and barley with shipment for August through September. (AgriCensus)

South Africa: Maize growers are warning the government that a ban on alcohol will hurt. (AgriCensus)

South Korea: FLC purchased 130 KMT of corn privately and 60 KMT optional origin; MFG conducted a ‘flash’ tender for 138 KMT of corn; KOCOPIA bought 60 KMT of corn likely from Brazil; and KFA rejected bids on its tender for being too high. (Reuters; AgriCensus)

Ukraine: Corn exports are down 59 percent compared with last year at this time but APK Inform has raised its estimate of corn production by 1.2 MMT to 36.6 MMT and its estimate of exports by 1 MMT to 29 MMT. (AgriCensus; Reuters)