Country News
Argentina: Labor groups continue to hold strikes as they demand covid-19 vaccines and port industry chambers have asked the government to intervene. The Buenos Aires Grain Exchange says corn yields were higher than expected based on the 42 percent harvested thus far. However, exporting the large crop will become more difficult as the Instituto Nacional del Agua (INA) says Parana River water levels will hit critical levels in the coming months. (Reuters; AgriCensus)
Brazil: A Reuters survey shows farmers harvesting 94 MMT of corn in 2020/21, 8.5 percent less than last season due to drought. Rabobank says the crop will be 89.5 MMT and other private estimates are lower including some at the 90 MMT mark and one as low as 86 to 88 MMT. AgroConsult lowered its estimate of the safrinha crop by 900 KMT.
Ethanol production will be reduced in the coming months to reduce the surge in corn prices. The consultancy Celeres lowered its estimate for corn exports from 32 MMT to 22.5 MMT and said imports could be as much as 4 MMT. The corn yield estimate could fall farther if dry weather persists. The National Monetary Committee has a new annual Plano Safra that will boost investment in corn and sorghum production by 6 percent. Overall plan expenditures will be BRL 250 billion (US$49.8 billion). (Reuters)
China: The National Development and Reform Commission has sent the state planner and market regulator to investigate bulk commodity prices in provinces and cities. Feed grain imports were up more than 300 percent in May from a year ago. Chinese customs reports that corn imports in May were 3.16 MMT, bringing the year total to 11.73 MMT. Imports from January to May were also substantially higher for barley (+116 percent) and sorghum (+125 percent). Feed imports are on track in 2020/21 to hit 26 MMT and more low-quality wheat is going into feed use.
Farmers have increased their corn planting area and could increase output by 4 percent from a year ago to 272 MMT. Domestic corn prices have fall to their lowest level of the year thus far and the most active contract on the Dalian exchange is down 12 percent from its record high in January. Corn import purchases already made for the marketing year beginning in September suggest that 2021/22 will also involve large imports. (Reuters)
EU: The 12 June MARS crop assessment raised spring barley yields by 2.6 percent, winter barley by 0.2 percent and maize by 0.4 percent versus its May estimates. French barley conditions are stable ahead of harvest. EU grain trade association Coceral says Europe could become a net grain importer under the new Farm to Fork strategy. (JRC Mars; AgriCensus; World Grain)
Japan: In April, feed millers reduced the amount of corn in rations by 1.8 percent from 2020. (Reuters)
Mexico: Agriculture Minister Víctor Villalobos aims to cut corn imports by 2 MMT in the medium term. (AgriCensus).
South Korea: KFA and MFG bought 200 KMT of corn in private deals; FLC purchased 65 KMT of corn on optional origin for $295.21/MT, plus a $1.50/MT surcharge for multiple port offloadings. The fall in corn prices has made it more competitive against wheat for feeding. (AgriCensus)
Russia: The government increased the export tax on grain and weekly corn and barley exports were zero. (AgriCensus)
Turkey: The state grain board (TMO) provisionally purchased 320 KMT of feed barley. (Reuters)
Ukraine: Weekly corn exports dropped, and overall grain exports are down 22 percent from the previous year. YTD corn exports total 22.3 MMT and barley exports 4.15 MMT. (Reuters)