Country News
Brazil: Corn exports hit 1 MMT in the second week of September. However, the head of Brazil’s food supply and logistics agency, Conab, said the government should consider temporarily eliminating the 8 percent import duty on corn to reduce historically high prices. The duty on rice has already been waived. (Reuters; AgriCensus)
China: The agriculture ministry raised its forecast for corn imports to 7 MMT from the August estimate of 5 MMT as the Chinese Agriculture Supply and Demand Estimates (CASDE) reduced domestic corn production forecast by 1.8 MMT. Several China-based grain analysts suggest that the string of typhoons hitting the country may cut 10 MMT from the corn crop, the equivalent of a nearly 4 percent reduction. There are also concerns about adverse impacts on the quality of the crop with lower test weights and more mold. The Dalian corn futures market contract hit 2,419 yuan/MT ($357.17/MT; $9.07/bushel).
China left its corn import TRQ for 2020/21 unchanged but some believe imports will be much larger than currently forecast. Importers just bought 350 KMT of U.S. corn, plus 140 KMT was changed from unknown to China. This was on top of a purchase for 595 KMT on 1 September. (Refinitiv; Reuters; Bloomberg; ProFarmer)
Canada: StatsCanada lowered its forecast for the barley harvest by 290 KMT for a total of 10.25 MMT. That would be a slightly smaller crop than a year ago. Prices are resilient though sales of barler by Ukraine to China are double that of a year ago. (FarmLead)
EU: The corn output estimate was cut by 2.2 percent from the August production number but is still 3.3 percent above the 5-year average. The September barley estimate is 0.2 percent lower than last month’s figure, but still 8.9 percent above the 5-year average. There are concerns about the quality of the drought-stricken French crop. (AgriCensus; MARS)
South Korea: Kocopia passed on a 55 KMT tender for corn with December arrival. Purchases of corn from Argentina no surpass the volume usually taken by Vietnam. (AgriCensus)
Taiwan: MFIG bought 65 KMT of Brazilian corn for Nov/Dec shipment at a premium to March. (AgriCensus)
Tunisia: The Office des Cereales (ODC) tendered for 42 KMT of barley. (AgriCensus)
Ukraine: The consultancy APK-Inform lowered its forecast for 2020 corn production 35.1 MMT, a 2.1 MMT reduction from its previous estimate. This year’s corn harvest is at 107 KMT, 88 percent behind last year. (AgriCensus)
Vietnam: The October corn arrivals number is 1.5 MMT. (AgriCensus)