Country News
Algeria: ONAB bought 40 KMT of corn at $184.75/mt. (AgriCensus)
Argentina: The government introduced capital controls, requiring dollars to be converted into pesos. Premiums for commodities like corn could rise as the government limits dollar trades. It costs farmers 70 percent less in input costs to plant soybeans rather than corn and fears over future government policy means a shift away from corn and toward more soybeans. Meanwhile, trade numbers are mixed in that upriver basis is negative as farmers seek to shed supplies ahead of government changes and an increase in the export duty. (AgriCensus; Reuters)
Brazil: Despite market uncertainty, corn planted area is likely to expand. The loss of value in the real as a currency will boost corn exports according to the Mato Grosso Agricultural Economic Research body IMEA. Domestic ethanol availability will be boosted by a temporary increase in the import quota. (AgriCensus; Reuters)
Canada: Feed barley prices in Saskatchewan have dropped nearly 11 percent over the past month and 15 percent during the past three months. In southern Alberta, they’ve shed 25 percent since the highs back in June. StatsCan raised the barley production forecast by 15 percent top 9.64 MMT. The risk is that an early frost turns late maturing malt grade barley into just feed barley. (FarmLead)
China: Corn auction demand continues to slide for a fourth week in a row to a new low for 2019. (AgriCensus)
EU: The 2019/20 corn production estimate was reduced to 68.5 MMT, down from 69.5 MMT one month ago, and exports are expected at 15.5 MMT. Corn imports are also up as the French corn crop’s conditions worsen due to late August heat and the EU’s barley crop estimate was increased. (AgriCensus)
South Africa: Despite a shortage, Zimbabwe corn buying lags expectations. (AgriCensus)
South Korea: KOCOPIA initially passed on a corn tender but bought from Cofco at $201.60/MT, while KFA bought at $198/mt and NOFI tendered to buy 69 KMT of February delivered corn with 40 KMT priced at $199.15/MT C&F and 29 KMT at $1.34 over Chicago. (AgriCensus; Reuters)
Thailand: A dry spell damaged 2019/20 corn production but nearly as much as the fall army worm. Production will be 4.4 MMT, or 22 percent lower than last year. (USDA/FAS)