Country News
Brazil: Estimated corn exports for the current local marketing year (March-February) were raised by USDA to 16 MMT, up 0.5 MMT from a month earlier but still 52 percent lower than last year’s exports. (USDA)
China: After selling a total of 20 MMT from its state-owned corn reserve, the government has suspended sales for the marketing year and has asked state-owned milling companies to increase their purchase of new crop corn from farmers. The government says it is reforming its stockpiling system and will take measures to protect farmers. Meanwhile, it is offering a 200 yuan/MT subsidy to corn refiners with the expectation that these companies will pay farmers a price in line with what the state grain reserve is paying (1,400 yuan/MT; $207/MT). The announced subsidy caused the futures market price to jump by 1.9 percent to $220.48/MT. (Bloomberg; Reuters)
Mexico: Representatives from five grain importers are visiting Iowa this week to assess the new crop. (Reuters)
Philippines: The local monthly allocation of ethanol required to meet the 10 percent blend mandate for the first quarter of 2017 was pegged at 75,835 cubic meters (20 million gallons). That is a 21 percent increase from the fourth quarter of 2016, and a 1.5 percent rise from first quarter 2016. Domestic production is increasing but the Philippines will still need to import nearly 43 percent of its supply in 2017 in order to meet the blend requirement. The domestic price of ethanol is 2.5 times greater than the imported fuel price and one end-user is quoted saying that ethanol should be imported instead of the feedstock being imported to make ethanol domestically. (Platts)