Market Perspectives – November 18, 2021

Country News

Argentina: The rains may be ending but they have helped boost a corn crop that the Rosario Grain Exchange now forecasts at 55 to 56 MMT and the Buenos Aires Grain Exchange pegs at 55 MMT. (Reuters)

Brazil: Corn planting in the center-south is at 85 percent but AgRural is concerned about the crop in Rio Grande do Sul where the lack of rain poses serious problems. Overall, first crop corn planting is 64 percent complete, versus 56 percent a year ago. Corn prices have softened under the weight of farmer selling to make way for the next soybean crop, plus imports. Conab believes this may make exporting more competitive, especially with the real weakening against the dollar. (Reuters; SPGlobal)

China: Corn prices have rallied to multi-month highs as wet weather has prevented field work and spiking energy costs deters heating and logistics. Prices have rallied 9 percent in the past month and are now their highest since June. A purchase of 500 KMT to 700 KMT of corn was made from Ukraine with prices ranging from $325-$335/MT C&F. Ukraine may benefit from lacking a transparent system of announcing sales and thus allowing buyers to avoid near-term price impacts. Meanwhile, Beijing has loosened the requirements for Chinese developed GMO crop approvals for domestic planting. China imported 1.3 MMT of corn in October with total imports at 26.2 MMT year to date. (Reuters)

Jordan: The state grain buying agency issued a tender for 120 KMT of feed barley. (Reuters)

Mexico: The consultancy Grupo Consultor de Mercados Agrícolas forecasts Mexico’s corn imports for 2022 at a record 17.86 MMT. (AgriCensus)

South Korea: NOFI bought 137 KMT of corn at $319.21/MT for February arrival and 69 KMT in a private transaction. MFG purchased 137 KMT of corn and KFA Incheon bought 66 KMT of corn while KFA Busan secured 64 KMT of corn. FLC made a private purchase of 65 KMT of corn priced at $318.40/MT C&F with a $1.50/MT surcharge for additional port unloading. Delivery is slated for February. (Reuters; AgriCensus)

Turkey: The government grain board TMO has purchased around 200 KMT of corn in an international tender. At least 50 KMT was priced at $310.45/MT and another 50 KMT at $213.20/MT. More purchases are pending with the total acquisition target being 350 KMT of corn. Shipments are for December/January. TMO is also seeking to purchase 320 KMT of barley in a new January tender. (Reuters; AgriCensus)

Ukraine: The corn harvest is 73 percent complete. (AgriCensus)

Vietnam: The government reduced the tariff on corn imports from the U.S. to 2 percent by the end of the year. The previous level was a 5 percent tariff. (Reuters)