Country News
Algeria: An estimated 120 KMT of feed barley was booked in a tender. (AgriCensus)
Argentina: The Rosario Grain Exchange forecasts the 2020/21 corn crop at 48 MMT, 2 MMT less than USDA. The Rosario Board of Trade (BCR) says August corn shipments could have reached a new record level. Complicating grain exports is the 50-year low water levels in the Parana River at the major loading port in Rosario. Plus, the volume of corn being sold by farmers has fallen by 10 percent. (AgriCensus; Bloomberg)
China: Sixty percent of reserve corn sold at auction (34 MMT) has yet to be delivered, but there is grain available from rotation and one-off reserve corn. A succession of typhoons moving through the Northeast corn growing area has raised concerns about the crop. Dalian futures are up, and some expect the purchase of 15 – 20 MMT of corn from the U.S. to fill the gap. (FarmLead; JCI)
Brazil: The Associação Nacional dos Exportadores de Cereais now says corn exports for September will be 5.7 MMT, versus 4.78 MMT in their last estimate. Corn exports are overshadowing soybeans sales. The Mato Grosso Institute of Agricultural Economics (IMEA) says the corn production area could expand 5 percent in 2020/21. Some of that will be absorbed by expanding corn ethanol use. However, much of Brazil’s corn was forward sold into the export market, shorting supplies for domestic livestock and ethanol use. The corn price indicator by Centro de Estudos Avançados em Economia Aplicada (CEPEA) hit Real 61.25/60 kg (USD192.77/MT) on Aug. 31, the highest level since tracking began in 2004. Add to that concerns that La Nina this coming crop season could pose challenges. (Hellenic Shipping News; FarmLead; JCI)
EU: French corn conditions slid further due to the third hottest August on record. (AgriCensus)
Thailand: Thailand’s Feed Milling Association (TFMA) bought 25 KMT of Australian barley at $209.50/MT. (AgriCensus)
Ukraine: Traders believe corn production could be 16 percent less at 33 MMT, and corn exports to date are 604 KMT versus 1.8 MMT by the same date last year. (AgriCensus; Reuters)