Country News
Brazil: A government offer to raise minimum truck freight rates by $30-40/MT is back in place after its removal was challenged by the truckers’ union. The agricultural sector has initiated a lawsuit and a judge in northern Brazil has issued an injunction against the fee increase. At least 60 ships are facing loading delays in Brazilian ports due to the uncertain situation. Brazil’s export prices surged 18 cents/bushel and the port price is trading at a 14-cent premium to U.S. values, versus a 32 cent/bushel discount this time last year. Meanwhile, the food statistics agency cut the forecast for second-crop corn production by 5 percent. (AgriCensus; Reuters)
China: The Heilongjiang corn auction sold just 23.36 percent of the 4.4 MMT offered for sale. The auction has failed to stem the recent price rise. Separately, the government has approved a new options contract for corn. (AgriCensus; Reuters)
European Union: COCERAL revised downward its estimate for European grain crops. The corn production projection was cut 1.4 MMT to a total of 60.3 MMT, still ahead of last year’s 59.9 MMT crop. The barley forecast was raised 0.5 MMT to 60.8 MMT due to improvements in France and Spain. By contrast, the French corn crop has been hit with excessive rain and hail. FranceAgriMer rates 77 percent of the corn crop as good/excellent, a drop of 15 percentage points from last week. France produces 25 percent of the EU corn crop with most of it sold to other member states. (Reuters; Agra-net; World-Grain)
Korea: Corn buying topped 1.1 MMT in a week. KOCOPIA bought 60 KMT of U.S. corn; two groups bought 202 KMT of optional origin corn right after two other groups bought 192 KMT of corn. KOCOPIA has issued a new tender for corn and the fall in Chicago prices is tempting MFG back into the market. (AgriCensus)
Ukraine: Corn sowing hit 99 percent of its target acres, but sales of the old crop corn is struggling against stiff competition. It isn’t price competitive in Asia and Argentina is beating it in the Middle East. Offers on new crop corn were heard at $188/MT, roughly $10/MT higher than Argentine and U.S. corn. (AgriCensus)