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    Home > Food News > Food Articles > Global feed market: recent good demand for corn in the US supports price increases

    Global feed market: recent good demand for corn in the US supports price increases

    • Last Update: 2021-12-24
    • Source: Internet
    • Author: User
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    Foreign media news on December 12: In the week ending December 10, 2021, most of the global food market prices have risen
    .
    U.
    S.
    corn export demand and the pace of domestic ethanol production are good, and the high cost of chemical fertilizers may restrict the scale of corn planting in the United States next spring, supporting the feed market
    .
    However, there are still concerns about the new mutant virus of Omi Keron.
    The prospects for a high corn yield in Brazil are clear, and the United States has lowered its corn-based ethanol blending requirements, which has restricted the price increase
    .
     
    On Friday, the Chicago Board of Trade (CBOT) March 2021 corn futures rose approximately 6 cents or 1% from a week ago to close at 590 cents per cat
    .
    The spot price of Meiwan No.
    2 yellow corn was 6.
    71 US dollars per cat, up 8.
    25 cents or 1.
    28% from a week ago
    .
    The March 2022 corn futures on the EURONEXT exchange closed at about 245.
    25 Euros/ton, up 2 Euros or 0.
    8% from a week ago
    .
    The FOB spot price of Argentine corn in Shanghe was US$257/ton, up US$4 or 1.
    6% from a week ago
    .
    The January corn futures settlement price on the Dalian Commodity Exchange closed at 2,645 yuan/ton, down 26 yuan or 1% from a week ago
    .
     
      International crude oil futures rose this week, setting the biggest weekly gain since August, mainly because the market’s concerns about the Omi Keron mutant strain have diminished, and there is no longer so much concern that the spread of this mutant strain will affect global economic growth and energy.
    Demand has had a significant impact, and market sentiment has been restored to help support rising oil prices
    .
    The New York Mercantile Exchange (NYMEX) West Texas Intermediate Crude Oil (WTI) January contract closed at $71.
    67 per barrel, up 8.
    16% from a week ago, and the global benchmark February Brent crude oil futures closed at 75.
    15.
    USD/barrel, up 7.
    54%
    .

     
      On Friday, the US dollar index closed at 96.
    05 points, down 0.
    1% from a week ago
    .
     
      U.
    S.
    Department of Agriculture's supply and demand report is calm
     
      In the December supply and demand report, the U.
    S.
    Department of Agriculture maintains the same data for US corn supply and demand for the year 2021/22.
    The output forecast is 15.
    062 billion bu, the yield is still 177 bu/acre, and the ending stock of corn is still 1.
    493 billion bu
    .
    The corn consumption data for the ethanol industry in 2021/22 remained unchanged, at 5.
    25 billion cattails
    .

     
      In terms of global corn, the US Department of Agriculture estimates that the world's ending stocks of corn for 2021/22 will be 30554 million tons, which is higher than the 30442 million tons predicted in November
    .
    Due to the increase in corn production forecasts in Ukraine and the European Union, the US Department of Agriculture will increase the global corn production in 2021/22 to 1.
    209 billion tons
    .

     
      Strong demand for U.
    S.
    corn
     
      Weekly data from the U.
    S.
    Energy Information Administration (EIA) shows that for the week ending December 3, 2021, the average daily ethanol production was 1.
    09 million barrels, which was higher than 1.
    035 million barrels per day a week ago and 991,000 barrels per day in the same period last year.
    Barrels/day
    .
    Corn is the main raw material for ethanol production in the United States
    .

     
      The US Department of Agriculture’s weekly export sales report shows that for the week ending December 2, 2021, the US’s 2021/22 net corn sales were 1,132,500 tons, an increase of 11% from the previous week and an increase of 2% from the four-week average
    .
    So far this year, US corn export sales totaled 36.
    56 million tons, a year-on-year decrease of 7.
    8%
    .

     
      U.
    S.
    Environmental Protection Agency lowers biofuel blending targets, potentially negative
     
      The U.
    S.
    Environmental Protection Agency (EPA) said on Tuesday that the U.
    S.
    needs to blend 12.
    5 billion gallons of corn-based ethanol into national fuels in 2020, and 13.
    3 billion gallons in 2021, both lower than the 15 billion gallons in 2019
    .
    The EPA also set a target for ethanol blending in 2022 at 15 billion gallons
    .
    This means that corn demand is declining, which puts pressure on prices
    .
     
      However, the EPA's policies are not all beneficial to refineries
    .
    For example, the U.
    S.
    Environmental Protection Agency proposed to reject the exemption of blending obligations for 65 small refineries
    .

     
      From the perspective of price trends, although corn is the main bioethanol feedstock in the United States, it has not received much impact
    .
    Analysts pointed out that regardless of the blending target set, the profit margin of ethanol production in the United States is very high, reaching US$1.
    45 per gallon in Iowa.
    Although it is lower than the high of US$1.
    55 at the end of November, it is still by historical standards.
    Very high
    .
    Iowa State University research shows that the average ethanol profit back to 2007 was $0.
    28 per gallon
    .
     
      China's corn production increases
     
      According to the monthly supply and demand report released by the Ministry of Agriculture on Thursday, China’s corn production in 2021/22 will reach 272.
    55 million tons, which is higher than the previous month’s estimate of 270.
    96 million tons and a year-on-year increase of 4.
    6%.
    This is based on the output data of the National Bureau of Statistics
    .
    China's corn imports in 2021/22 are expected to be 20 million tons, lower than 29.
    56 million tons in the previous year
    .

     
      The Brazilian government raised corn production, but the analysis agency said the first season corn output may be lower than expected
     
      The National Commodity Supply Company (CONAB), a subsidiary of the Brazilian Ministry of Agriculture, said that the forecast value of Brazil’s 2021/22 corn production has been raised to 117.
    2 million tons, which is higher than the previous forecast of 116.
    7 million tons, which is higher than the 2020/21 year due to the weather reduction.
    The output surged by 34.
    6%, mainly due to the overall good weather
    .
    The forecast value of Brazil's corn export in the year of 2021/22 is also maintained at 36.
    68 million tons, which is much higher than the 19.
    2 million tons of the previous year
    .

     
      However, consulting firm AgRural said that due to drought and high temperature affecting crop growth in southern Brazil, the first season of corn production in Brazil's 2021/22 season will be lower than initially expected
    .
    Rainfall in southern Brazil in November was below average, and the weather forecast indicated that the area was dry in early December
    .
    Rio Grande do Sul, the most rain-poor state, is the main producing area for the first season of corn
    .
     
      Argentine corn production is expected to be bumper
     
      The Buenos Aires Grain Exchange said that as of Wednesday, corn planting progress in Argentina reached nearly 40%
    .
    As the planting area increased by 2.
    8%, the exchange expects this year's corn output to reach 57 million tons
    .
    Farmers plan to expand the area of ​​late sowing corn to avoid dry weather in the coming months
    .
     
      French corn production increased
     
      On Wednesday (December 8), FranceAgriMer, the crop office under the French Ministry of Agriculture, released a monthly report, maintaining the forecast for the end of the French barley and corn stocks for the year of 2021/22 unchanged at 1.
    4 million tons and 1.
    9 million tons, respectively
    .
    The office raised French corn production by more than 200,000 tons, but this was offset by an increase in demand, including an increase in domestic feed consumption and export forecasts by 100,000 tons
    .

    Price U.
    S.
    Corn Export Ethanol Virus Brazil
     
      On Friday, the Chicago Board of Trade (CBOT) March 2021 corn futures rose approximately 6 cents or 1% from a week ago to close at 590 cents per cat
    .
    The spot price of Meiwan No.
    2 yellow corn was 6.
    71 US dollars per cat, up 8.
    25 cents or 1.
    28% from a week ago
    .
    The March 2022 corn futures on the EURONEXT exchange closed at about 245.
    25 Euros/ton, up 2 Euros or 0.
    8% from a week ago
    .
    The FOB spot price of Argentine corn in Shanghe was US$257/ton, up US$4 or 1.
    6% from a week ago
    .
    The January corn futures settlement price on the Dalian Commodity Exchange closed at 2,645 yuan/ton, down 26 yuan or 1% from a week ago
    .
     
      International crude oil futures rose this week, setting the biggest weekly gain since August, mainly because the market’s concerns about the Omi Keron mutant strain have diminished, and there is no longer so much concern that the spread of this mutant strain will affect global economic growth and energy.
    Demand has had a significant impact, and market sentiment has been restored to help support rising oil prices
    .
    The New York Mercantile Exchange (NYMEX) West Texas Intermediate Crude Oil (WTI) January contract closed at $71.
    67 per barrel, up 8.
    16% from a week ago, and the global benchmark February Brent crude oil futures closed at 75.
    15.
    USD/barrel, up 7.
    54%
    .

     
      On Friday, the US dollar index closed at 96.
    05 points, down 0.
    1% from a week ago
    .
     
      U.
    S.
    Department of Agriculture's supply and demand report is calm
     
      In the December supply and demand report, the U.
    S.
    Department of Agriculture maintains the same data for US corn supply and demand for the year 2021/22.
    The output forecast is 15.
    062 billion bu, the yield is still 177 bu/acre, and the ending stock of corn is still 1.
    493 billion bu
    .
    The corn consumption data for the ethanol industry in 2021/22 remained unchanged, at 5.
    25 billion cattails
    .

     
      In terms of global corn, the US Department of Agriculture estimates that the world's ending stocks of corn for 2021/22 will be 30554 million tons, which is higher than the 30442 million tons predicted in November
    .
    Due to the increase in corn production forecasts in Ukraine and the European Union, the US Department of Agriculture will increase the global corn production in 2021/22 to 1.
    209 billion tons
    .

     
      Strong demand for U.
    S.
    corn
     
      Weekly data from the U.
    S.
    Energy Information Administration (EIA) shows that for the week ending December 3, 2021, the average daily ethanol production was 1.
    09 million barrels, which was higher than 1.
    035 million barrels per day a week ago and 991,000 barrels per day in the same period last year.
    Barrels/day
    .
    Corn is the main raw material for ethanol production in the United States
    .

     
      The US Department of Agriculture’s weekly export sales report shows that for the week ending December 2, 2021, the US’s 2021/22 net corn sales were 1,132,500 tons, an increase of 11% from the previous week and an increase of 2% from the four-week average
    .
    So far this year, US corn export sales totaled 36.
    56 million tons, a year-on-year decrease of 7.
    8%
    .

     
      U.
    S.
    Environmental Protection Agency lowers biofuel blending targets, potentially negative
     
      The U.
    S.
    Environmental Protection Agency (EPA) said on Tuesday that the U.
    S.
    needs to blend 12.
    5 billion gallons of corn-based ethanol into national fuels in 2020, and 13.
    3 billion gallons in 2021, both lower than the 15 billion gallons in 2019
    .
    The EPA also set a target for ethanol blending in 2022 at 15 billion gallons
    .
    This means that corn demand is declining, which puts pressure on prices
    .
     
      However, the EPA's policies are not all beneficial to refineries
    .
    For example, the U.
    S.
    Environmental Protection Agency proposed to reject the exemption of blending obligations for 65 small refineries
    .

     
      ,,
    。,,,1.
    45,111.
    55,
    。,20070.
    28/
     
      
     
      ,2021/222.
    7255,2.
    7096,4.
    6%,
    。2021/222000,2956

     
      ,
     
      (CONAB),2021/221.
    172,1.
    167,2020/2134.
    6%,
    。2021/223668,1920
     
      AgRural,,2021/22
    。11,12

     
      
     
      The Buenos Aires Grain Exchange said that as of Wednesday, corn planting progress in Argentina reached nearly 40%
    .
    As the planting area increased by 2.
    8%, the exchange expects this year's corn output to reach 57 million tons
    .
    Farmers plan to expand the area of ​​late sowing corn to avoid dry weather in the coming months
    .
     
      French corn production increased
     
      On Wednesday (December 8), FranceAgriMer, the crop office under the French Ministry of Agriculture, released a monthly report, maintaining the forecast for the end of the French barley and corn stocks for the year of 2021/22 unchanged at 1.
    4 million tons and 1.
    9 million tons, respectively
    .
    The office raised French corn production by more than 200,000 tons, but this was offset by an increase in demand, including an increase in domestic feed consumption and export forecasts by 100,000 tons
    .
    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

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