Market Perspectives September 7, 2017

Country News

Brazil: Farmers are prepared to cut corn production in half next season due to low prices. In addition to price causing a 50 percent decline in planted area, Paulo Bertolini of the Brazilian Association of Corn Growers says that farmers are carrying a lot of debt and corn is expensive to plant. Additional factors include the volatility of the dollar and political uncertainty. (Successful Farming; Agriculture.com) 

Canada: Statistics Canada in its August 31 Principal Field Crops Areas report forecasts that 7 percent expansion in corn planted area will offset a drought-induced 3.3 percent decline in yield and lead to a 3.4 percent increase in total production (12.6 MMT). Barley production will be down by 17.9 percent to 7.2 MMT. (World Grain) 

Saudi Arabia: Imports of corn and DDGS from the U.S. have nearly doubled as a result of more competitive prices, but also due to policy changes such as DDGS, corn gluten feed/meal being part of 14 newly approved feed ingredients. An additional factor was the phaseout of the country’s subsidized wheat production. (World Grain) 

Vietnam: The government of Vietnam has lifted a prior restriction on DDGS imports and will allow the use of phosphine fumigation protocols instead of the application of methyl bromide. These policy changes should lead to increased imports of both corn and DDGS. (Ethanol Producer Magazine)