Country News
Brazil: The first corn cargo from the new Brazilian grain terminal at Tegram in the northeastern state of Maranhao has been shipped, according to Reuters. Trading company CGG has shipped 65,000 MT of corn to the Middle East and is predicted to ship 1 MMT by year’s end. The port was constructed to alleviate the heavy congestion inherent in Brazil’s southern grain terminals.
China: Chinese demand for Australian sorghum has begun to slow amidst concerns that the government may impose a tariff to curb the large amount of the grain being imported in conjunction with a potential reduction of China’s domestic corn price, according to Reuters. Sorghum imports could fall by as much as 30 percent in 2015/16 as buyers have started cutting back on orders. Chinese imports of Australian sorghum are forecast to total a record-setting 483,000 MT in 2015/16, which is up from the 464,000 MT in 2014/15. Chinese sorghum consumption this year will be 11.1 MMT, which is a large increase over the 3.2 MMT consumed in 2012.
Further on China: Bloomberg reports that the International Grains Council (IGC) has raised its estimate for Chinese corn production by 5 MMT to now total a record-setting 225 MMT. Global corn production is expected to be 966 MMT this year.
South Africa: Africa’s largest corn producer is likely to once again cut the forecast for this year’s crop, reports Bloomberg News. The current estimate is that farmers will bring in between 9.6-9.75 MMT, which is a major decrease from last year’s bumper crop of 14.3 MMT.
Ukraine: Black Sea feed wheat bookings to Asia have increased as far out as December as millers increasingly look to use it as a corn substitute in feed rations, reports Reuters. South Korea, Thailand and the Philippines have ordered around 3 MMT of feed wheat worth $600 million for shipment between July and December. Thailand alone is ordering around 150,000 MT of wheat per month. One trader attributed the shift in ordering to the fact that Ukrainian feed wheat has been available at a cheaper rate than Brazilian corn. The 100,000 MT of feed wheat slated for September/October shipment to the Philippines was sold at $210-$220/MT cost and freight, while Brazilian corn was recently quoted at $220/MT cost and freight (although prices have since slid to around $190/MT). USDA reports that Ukrainian feed wheat exports are expected to be 12.5 MMT this year.