Country News
Argentina: The Buenos Aires Grain Exchange lowered its estimate for 2017/18 corn production to 39.5 MMT. The Exchange says that yields have been poor for the corn that has been harvested. Bulk carriers will load 1.57 MMT of corn for export by 11 April. (AgriCensus, Reuters)
Brazil: The consultancy Safras & Mercado says 96.8 percent of the winter corn crop has been planted, down slightly from last year, and production is expected at 59.52 MMT, which will be 12.5 percent lower than last year. Harvesting of the summer corn crop is at 56 percent, slightly ahead of last year. The winter crop, which is expected to be 28.5 percent smaller than the year before, is mostly export bound. (Platts)
Ethiopia: Better than expected weather, better seed and fertilizer plus action to fight losses from the Fall Army Worm have buoyed corn production. Production in 2017/18 is forecast at 7 MMT, versus 6.5 MMT last year. Next year’s crop is expected to be 7.1 MMT. (USDA/FAS)
India: Despite a predicted record harvest of 25.5 MMT of corn, India will likely have to import 500 KMT due to rapidly increasing feed industry demand. There is a duty-free quota for 500 KMT and imports above that amount would have to pay a 50 percent tariff. (AgriCensus)
Saudi Arabia: State grain buyer SAGO is seeking to purchase 1.02 MMT of barley for May/June delivery. Barley prices are uniquely trading at a premium to milling wheat due to tight supply. SAGO’s market report indicates supplier prices (per MT) CIF Saudi Arabia at: $238.30/MT (Russia), $244.30 (Germany) and $267.80 (Australia). (AgriCensus)
South Korea: Feed association NOFI reissued a tender and was offered corn at $216.50/MT, likely from the PNW with delivery during last half August. However, public tendering is falling out of favor as it is believed to force prices higher. Instead, private buying is on the rise but even these types of trades are at around $216/MT. Buyers believe prices will soften and so are waiting until later to fulfill the needs for the second half of the year. (AgriCensus)
Tunisia: State grain buyer Office de Cereales bought 25 KMT of feed barley at $246.24/MT. That is a 2.5 percent increase in price for the month. (AgriCensus)
Ukraine: Corn prices plunged $10/MT as demand appeared to have softened. China cancelled some corn contracts and instead bought barley. Argentina is offering corn at nearly 9 percent below Black Sea corn prices but a strict protocol the country signed with China is preventing offers due to insufficient quality. (AgriCensus, Platts)