Market Perspectives – March 2, 2023

Country News

Argentina: Farmers hurt by the worst drought in 60 years are demanding that the government grant relief including eliminating export taxes. Protestors have given the government until 13 March to reply to their demands. (Refinitiv)

Brazil: Nearly half the safrinha corn crop has been planted, slowed by rains it is about a week behind schedule. However, consultancy Agro Consult raised its corn production forecast to 128.5 MMT. IMEA says that because corn production costs are up, higher yields will be needed. Meanwhile, the government must decide on whether to keep an ethanol gas tax exemption. (DTN, AgriCensus)

EU: Winter crop conditions are good, except in the west where it is dry and there are worries of a drought repeat in France. However, FranceAgriMer reports that the sowing of spring barley in France is progressing strongly. (AgriCensus)

India: Corn exports have been boosted by drought in Argentina reducing supplies normally sent to Asia. Buyers in Malaysia and Vietnam have bought 200 KMT of Indian corn. (Refinitiv)

Jordan: Government agency MIT bought 100 KMT of barley for June/July shipment. (AgriCensus)

New Zealand: Police are investigating a fire at the Corson Grain Mill. The mill typically processes corn for cereal products and animal feed. There is no obvious cause for the fire and it is being viewed as a possible crime. (World Grain).

South Korea: KFA tendered for 69 KMT of optional origin corn and feed makers are ready to buy as prices slide. Leading feed maker NOFI purchased 69 KMT of corn on a 138 KMT tender. The optional origin corn will be delivered around 15 June. (Reuters; AgriCensus)

Turkey: Government agency TMO launched a later tender for 440 KMT of barley with bids due on 2 March. (AgriCensus)

Ukraine: Grain exports in February were nearly 3 percent higher year-on-year though overall marketing year sales are down 26 percent. Higher fuel and fertilizer costs could dent production in 2023. Half of the grain moving out of Ukraine via the Black Sea corridor agreement is comprised of corn. The agreement expires 18 March and Russia is balking at renewing it. (Reuters)

Zimbabwe: The Sorghum and Pearl Millet Hybrid Parents Research Consortium has developed a white sorghum expected to boost yields by 25 percent. Thehybrod also has good resistance to common leaf diseases and tolerates southern Africa’s erratic rainfall. (World Grain)