Global food market: U.S. corn exports are strong, Argentina will restrict exports

 

On Friday, the Chicago Board of Trade (CBOT) March 2021 corn futures rose 3.
25 cents or 0.
55% from a week ago to close at 593.
25 cents/po
.
The spot price of Meiwan No.
2 yellow corn was 6.
7525 US dollars per cat, up 4.
25 cents or 0.
6% from a week ago
.
The March 2022 corn futures on the EURONEXT exchange closed at 240.
50 euros/ton, down 4.
75 euros or 1.
9% from a week ago
.
The FOB spot price of Argentine corn in Shanghe was US$257/ton, the same as a week ago
.
The January corn futures settlement price on the Dalian Commodity Exchange closed at 2,677 yuan/ton, up 32 yuan/or 1.
2% from a week ago
.

 

　　International crude oil futures fell this week, and investors worried that the Omi Keron mutant strain might hit global economic growth and energy demand
.
The New York Mercantile Exchange (NYMEX) West Texas Intermediate Crude Oil (WTI) February contract closed at $70.
72 per barrel, down 1% from a week ago.
The global benchmark February Brent crude oil futures closed at 73.
52.
The US dollar/barrel was down 2.
2% from a week ago
.
On Friday, the US dollar index closed at 96.
67 points, up 0.
6% from a week ago
.

 

　　U.
S.
corn export sales increase, strong demand from Mexico and Canada

 

　　The US corn export sales data released this week are very strong, boosting market sentiment
.
With the end of the corn harvest in the United States, the pace of exports has accelerated significantly, mainly due to the strong demand from neighboring Mexico and Canada
.
The US Department of Agriculture’s weekly export sales report shows that for the week ending December 9, 2021, US corn sales for the year 2021/22 were 1.
95 million tons, a new annual high, an increase of 72% from last week and an increase of 74 from the four-week average.
%
.

 

　　So far this year, total US corn export sales are still down 7.
4% year-on-year to 38.
51 million tons, mainly because Chinese buyers have been absent from the US corn market recently after purchasing at the beginning of the year
.
In contrast, Chinese buyers are actively purchasing corn and other feeds from Ukraine to promote the growth of Ukrainian corn exports
.
According to data from the Ministry of Agriculture of Ukraine, as of December 10, Ukraine’s corn exports in 2021/22 reached 7.
763 million tons, a year-on-year increase of 1.
088 million tons
.

 

　　Argentina will restrict corn exports

 

　　On Friday, Argentina announced restrictions on wheat and corn exports to curb domestic food inflation
.
Argentina's domestic inflation rate is as high as 51%
.
According to a resolution issued by the Argentine government on Friday, the government will first determine how much grain is needed in the country, and then will take measures to restrict exports
.
Argentine Minister of Industry Julian Domingos stated that Argentina will be able to export 41.
6 million tons of corn
.
However, he did not specify the specific year
.

 

　　The Buenos Aires Grain Exchange (BAGE) predicts that Argentina’s corn production will reach 57 million tons in 2021/22, up from 52.
5 million tons in the previous year
.
At present, 48% of the corn planting in Argentina in 2021/22 has been planted, which is 7.
5% behind last year
.
Because farmers postponed planting to avoid the dry weather that may appear in the next few months
.
La Nina reappeared this year, and this weather phenomenon usually leads to dry weather in Argentina
.
Although the rains have been good in the agricultural production areas of Argentina so far this year, farmers remain vigilant about possible dry weather in summer
.
The Argentine summer starts on December 21 and lasts until February
.
The increase in the proportion of late sowing corn helps to avoid the influence of summer dry weather when it enters the flowering period
.

 

　　Dry weather in southern Brazil may cause crop damage

 

　　In southern Brazil, rain was scarce in November, and the dry weather in early December has already caused the loss of the first season of corn
.
In the states of Parana and Santa Catarina, corn growers are worried about lack of rain
.
In Rio Grande do Sul, drought has caused irreversible damage to some corn
.
The Parana State Rural Economic Research Institute (DERAL) stated that the state of the corn crops in Parana State has deteriorated again in 2021/22 because some areas are hot and less rainy
.
The percentage of corn with good ratings has dropped from 90% to 77%, the percentage of corn with average ratings has increased from 9% to 20%, and 3% of corn crops have poor ratings
.

 

　　AgRural’s report released on December 16 predicted that the total corn production in Brazil for the 2021/22 season was 114.
4 million tons, which was lower than the 115.
5 million tons predicted in November, but much higher than the 87 million tons produced in 2020/21 due to drought.
And frost affected the corn harvest
.
AgRural said that the first season of corn in Rio Grande do Sul has suffered "serious losses
.
" The state’s production is expected to be 4.
4 million tons, which is 1.
2 million tons lower than in November
.
The most severely affected areas are concentrated in northwestern Rio Grande do Sul, where corn planting began in mid-August.
The hot and dry weather in November and early December has adversely affected corn pollination and grain filling
.
The first-season maize production in the central and southern regions of Brazil in 2021/22 was 20.
3 million tons, which was 1.
4 million tons lower than the November forecast
.

 

　　The European Commission raises EU corn production forecast by 1 million tons

 

　　The European Commission issued a monthly report this week, raising the corn output of the 27 EU countries for the year of 201-222 to 69.
4 million tons, which is 1 million tons higher than the 68.
4 million tons predicted last month
.
The forecast value of EU corn imports in 2021/22 remains unchanged at 14.
5 million tons
.