Country News
Argentina: Corn planting in Argentina is off to a good start with favorable weather. However, many farmers are concerned about low global prices and the fact that the government has yet to announce this year’s export quota, according to Reuters. Farmers are also expected to reduce the total area dedicated to corn planting by 700,000 hectares (16 percent) to 3.7 million hectares as high inflation has caused a spike in production costs.
Canada: An early frost in Alberta could potentially damage that province’s wheat and barley crop, reports Reuters. 39 percent of Alberta’s harvest had been brought in as of September 12, and it is believed that the frost could lower the crops’ grade quality and delay the remaining harvest, which is not seen as being a major setback.
China: China will likely harvest 2.2 percent less corn in 2014 following a major drought this summer in the country’s northeast, according to Reuters. The China National Grain and Oils Information Center has released an estimate that this year’s corn output will total some 213.8 MMT, which is a reduction of 8.5 MMT from its August estimate. This is the first fall in domestic corn production since 2010.
South Africa: South African yellow corn for December delivery dropped to $164/MT, according to Bloomberg News.
Russia: Russia is in talks with Iran to trade grain valued at $500 million in exchange for oil as a means of getting around Western sanctions, reports Reuters. State-controlled grain trader United Grain Company has stated that it was ready to trade 1-2 MMT of grain per year in return for oil.