Country News
Brazil: Consultancy firm AgRural says that the winter safrinha corn crop is producing larger than expected yields. Soybean & Corn Advisor had increased its projection for Brazil’s total 2016/17 corn production to 93 MMT, but AgRural has boosted its guess of the safrinha crop by 3.5 percent and the prior summer crop by nearly 2 percent to reach a total of 94.4 MMT – a 42 percent increase in production year on year. (Bloomberg)
China: A total of 7 MMT of 2013 harvested corn is being offered this week at auction from government reserves. Last week, the government sold nearly 1 MMT of 2011 and 2012 crop corn at 1,225 yuan/MT (US$177.85), which is a 25 percent discount to the September Dalian futures contract. It sold another 3.56 MMT at 1,409 yuan/MT. The price of corn on the Dalian remains under pressure.
Meanwhile, the National Meteorological Service says that recent rains have eased drought conditions in northern areas, and this will help farmers to replant crops. But, others contend that high temperatures will cause the drought to persist and the government recommends the planting of drought tolerant crops instead of corn. (Reuters; Bloomberg)
France: The French corn growers’ group AGPM says that beneficial rains and a slumping dollar is putting downward pressure on LIFFE futures prices. The euro value of corn was down 4 percent last week, the largest decline since 2015. Meanwhile, MDA agricultural weather forecaster Donald Keeney says that a return of dry, warm conditions will impose persistent dryness on the crops in France and Spain. (Bloomberg)
South Africa: The yields being achieved by the continent’s largest corn producer, South Africa, is raising expectations that this year’s crop could reach 14.65 MMT, the second largest on record. The April forecast by the government’s Crop Estimates Committee called for 14.54 MMT. (Newsday; Bloomberg)