Country News
China: Andy Shissler of S&W Trading says that 70 percent of China’s corn stockpile is “past its date” and the government may have to give a subsidy payment to farmers to get them to plant corn in 2018. The State Administration of Grain said it will increase its purchases of newly harvested corn as rains threaten the crop in the south. It may also expand storage capacity. (Bloomberg; Reuters)
Egypt: There is an increasing interest in corn from Ukraine. Traditional purchases from Argentina and Brazil are 50 to 60 KMT, requiring hedging and storage. Instead, corn can be bought at a flat price from Ukraine, which delivers it in small (5 to 10 KMT), more easily managed amounts. (Platts)
Mexico: Despite threats to buy corn from South America, Mexico purchased 1.36 MMT of U.S. corn, the fourth largest ever purchase amount and the tenth biggest corn sale to any country. (Bloomberg)
World: The International Grains Council boosted its projection for global grain production by 6 MMT with 83 percent of the increase attributed to larger U.S. production of corn. The organization also increased its prediction for global grain disappearance by 8 MMT, largely due to increased production of corn-based ethanol by China. (IGC)