Country News
Argentina: The Buenos Aires Grain Exchange raised its estimate of corn production in 2020/21 by 2 MMT to a total of 48 MMT. Prices for corn have been mixed and farmer sales of the crop have tumbled as water levels on the Parana continue to fall, causing two-month delays for barges. (Reuters; AgriCensus)
Brazil: CONAB, the equivalent of USDA, cut its estimate of the safrinha corn crop by nearly 10 MMT from its May estimate to 69.957 MMT. It also reduced exports and its estimate for the overall annualized crop number down to 96.932 MMT, which is below the USDA estimate. The corn harvest is slower than last year, but it has begun to put downward pressure on prices. With just 1-2 percent of the corn crop harvested, farmers have already sold 56.9 percent of their anticipated production. There is heightened concern about farmers breaching contracts. The price is also being pressured lower due to the exchange rate. Agriculture Minister Tereza Cristina said that the Biosecurity National Technical Commission (CTNBio) will soon give notice on whether imports of GMO corn will be allowed to alleviate shortages. Corn imports are already at 821 KMT, which is a 78 percent increase over a year earlier. (Brownfield News; S&P Global Platts; Soybean and Corn Advisor; AgriCensus)
China: Ben Brown of the University of Missouri says that China’s corn imports have exceeded USDA’s estimate and that surplus corn stocks are likely lower than the official estimate of 198 MMT. Some private analysts say that China’s corn imports will be 29 MMT, plus 25 MMT of other feed products (sorghum, barley, DDGS and cassava). State grain company Sinograin will auction 37,126 MT of corn on 18 June. The lot is part of 11.3 MMT of corn imported in 2020. Meanwhile, the government is taking steps to boost corn production and to stabilize prices. The government wants lower prices for consumers but higher prices for farmers and Premier Li Keqiang assured farmers in Jilin province that are facing rising land and fertilizer costs that the government will not allow corn prices to drop excessively. At least two shiploads of U.S. corn are being held up due to ports being clogged with vessels competing for berth space. (RFD TV; AgriCensus; Bloomberg)
Mexico: National Agricultural Council President Jun Cortina Gallardo says the government has delayed approval of at least eight GMO corn permits. A government ban on GMO corn is not supposed to take effect until 2024 but the delay in approvals by the regulatory agency COFEPRIS has effectively moved up the ban by two years. (Reuters)
South Korea: The Korean Feed Association purchased corn privately from Cofco at $315/MT. (AgriCensus)