Country News
Argentina: The Ministry of Agriculture reports that ethanol sales in April reached 86.4 million liters and are up 30 percent on the year. Cordoba province accounted for nearly 36 percent of the total sales, while Tucuman accounted for 26 percent. In March, ethanol mixed represented 11.27 percent of total gasoline sales. Ethanol from sugarcane accounted for 44 percent of the total with the balance produced from corn. (Platts)
Brazil: The consulting firm AgRural reports that 9.3 percent of the winter corn crop has been harvested, which is ahead of the four-year average of 8.8 percent but behind last year’s 12.4 percent level at this time. Some say the crop is “perfect” and the research institute Cepea reports that prices in Sao Paulo have fallen to $133/MT ($3.33/bushel). By contrast, Monsanto COO Brett Begemann said that low prices discouraged plantings and that, “We’re planning for somewhat of a reduction in acres.” The national supply company Conab will provide subsidies to farmers of BRL 16.50/bag ($2.11/bushel) for selling 0.5 MMT of corn into the market. Buyers of an additional 78.4 KMT of corn will be eligible for price subsidies. (Bloomberg; Agrimoney)
China: China’s National Grain Trade Centre reports that 1.17 MMT of corn was sold from state reserves last Friday (June 23) after selling just 120.9 KMT out of 1.3 MMT offered a day earlier. Some of the surplus corn is being used to ramp up ethanol production and exports of the fuel surged in May to 16,304 cubic meters, which is 15 times the volume shipped in the same month a year ago.
Ethanol exports for the year are the highest since 2010 and Saudi Arabia has been the top customer at 64 percent of the total. Imports of ethanol have been blocked by high tariffs. Meanwhile, supplies of corn starch have tightened as government subsidies are set to end, causing corn futures prices to rise to a three-month high of 1,677 yuan/MT ($248.16). (Bloomberg; Reuters)
Ukraine: UkrAgroConsult reports that corn development in Ukraine lags in development by 10 to 15 days versus last year. The problem is dry soil. (Bloomberg)
United Kingdom: The UK has become a net importer of wheat for only the fourth time in 25 years as a result of growing demand to turn it into bioethanol. Demand for wheat for ethanol production is 12,000 greater than the forecast in March. (Agrimoney)