Global Hot Spots: Drought cuts India's corn crop

Global Hot Spots: Drought cuts India's corn crop

Argentina sees more corn, Japan buys more corn.

Drought cuts India’s corn crop, imports needed – Reuters

India is considering importing an extra 500,000 metric tons of duty-free corn to overcome a shortage after a second straight drought cut output, Reuters said quoting a government source.

India typically exports corn to Southeast Asia, but higher local prices due to the drought and rising domestic demand have halted exports and forced it to import.

In its first international tender, government-backed trader contracted with South Korea's Daewoo International to supply 250,000 metric tons of duty-free yellow, non-GMO corn.

India considers importing corn, Argentine farmers plant more corn and Japanese millers buy more corn.

"Indian corn prices have shot up massively and actual users have asked us to facilitate corn imports. That's why the talk of another 500,000 tons of imports has started," the official said.

Indian farmers grow corn twice a year. The winter crop is planted in October, with harvests in March and April. Planting of the summer crop has started but it will be late September before those supplies are available.

Argentina sees more corn, fewer soybeans – MercoPress

Argentina's Agro-industry minister Ricardo Buryaile estimated the 2016/17 corn crop should reach 52.9 million tons, given a 20% increase in the area planted, which will be in detriment of soybeans, according to MercoPress.

Argentina is the world's fourth largest exporter of corn.

“We estimate the area planted with corn should increase 20%, and despite some contradictions we're sorting out, this should represent some additional 10 to 15 million tons”, said minister Buryaile in Colombia on the sidelines of the Economic Forum held in Medellin.

 “Obviously we are going to have less area with soybeans, which means that the 60 million tons harvest could drop to 55 million tons” said minister Buryaile

As to wheat, the minister estimates that the crop should increase 50% to 15/16 million tons, compared to the 10.5 million tons of the last harvest.

 Low corn prices prompt Japan to buy more – attache

Japanese feed millers took advantage of low global prices for corn to ramp up purchases in its 2015/2016 market year, which concluded in April, USDA’s attache office said in June.

Feed millers increased corn imports 5% in the first seven months of marketing year 2015/16 (May-December 2015) compared to the previous year. The attache report believes Japan’s imported 15 million metric tons for the entire year (May 2015-April 2016).  The report also said that from October 2015 to April 2016 the United States shipped nearly 4.78 million tons to Japan, down 31.5% from the year earlier period. Brazil’s share then, 4.24 million, was up 220.5 %

The utilization of sorghum in feed has dropped below 3% percent, the lowest on record, largely due to the increased utilization of rice and corn. Post forecasts consumption and imports of sorghum to decline to 750,000 MT and 780,000 MT respectively in MY2015/16.

For the market year 2016/17 (May 2016-April 2017), feed consumption is forecast to stay flat if the corn price stays at the current level. Imports in that crop year are expected to slip to 14.9 million tons.

May 20, 2016 - Global Hot Spots: South Africa purchases wheat

May 13, 2016 - Global Hot Spots: El Nino hurts crops in Philippines

TAGS: USDA Soybean
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