Market Perspectives – September 26, 2019

Country News

Argentina: The Buenos Aires Grain Exchange estimates the 2019/20 corn crop at 50 MMT, which is now consistent with USDA’s September WASDE report. The increase is based on expanding the production area to 6.4 million hectares versus the 6.2 million hectares planted last season. Meanwhile, the Central Bank reports that 8.7 MMT of 2019/20 corn has been exported. Exporters are rushing the movement of corn ahead of an expected export tax being imposed. (Reuters; AgriCensus)

Brazil: The agriculture ministry says that corn exports have rebounded (AgriCensus)

China: The 2019/20 corn crop is larger but some of it has quality concerns. The government’s auction sold 500 KMT of corn, the most in five weeks. (AgriCensus)

Egypt: Corn imports will rise 4 percent to offset lower domestic output. (AgriCensus; USDA)

EU: The corn harvest has begun in France even as crop conditions are dropping. (AgriCensus)

India: The kharif (rainy season) corn crop will be 4 percent larger but still shy of the target amount. The government split a corn import quota for 400 KMT. (AgriCensus)

Southern Africa: The FAO says that higher rainfall amounts will boost the region’s corn output. (AgriCensus)

Taiwan: The feed making group MFIG purchased 65 KMT of corn from Glencore at $201/MT. Illinois officials say that Taiwan has committed to buy $2.2 billion worth of corn and soybeans from their state. (AgriCensus; Crain’s)

Turkey: The government agency TMO tendered for barley (AgrCensus)

Ukraine: Corn yields are 8 percent higher this year and averaging 95 bushels per acre. This could put the crop larger than the 36 MMT predicted by USDA. Barley exports have made solid gains. (FarmLead; AgriCensus)

Zimbabwe: The drought and an economic crisis has created a food security risk but Tanzania will deliver 100 KMT of corn in weeks. (Bloomberg)