Ukraine to become China’s top supplier of corn

Ukraine is on track to become China’s top supplier of corn in the first half of 2015, according to a report.
According to the latest customs data for May, China imported 403,881 tons of corn, 95 percent of which came from Ukraine. This brings China’s imports from Ukraine to 1.55 million tons for the first five months of 2015.
After Kiev and Beijing signed a $3 billion loan-for-corn deal in 2012, Ukraine has established itself as China’s top corn exporter. Ukrainian agricultural groups have sought investment and export deals with Chinese companies such as Cofco, the state-owned grains trader.
Until last year, the United States was the top corn exporter to China. For the first five months of 2015, China imported 45,000 tons of corn from the U.S., down 95 percent from the previous year.
Economists say the rising imports from Eastern Europe point to China’s new “Silk Road” plan, which aims to upgrade roads and rails between Europe and Asia while revitalizing maritime routes across Southeast Asia and the India Ocean.
“Ukraine is on the new trade route to Europe that China wants to develop. It also meshes with China promoting investment and infrastructure in parts of the world that are neglected,” said Fred Gale, senior economist at the U.S. Department of Agriculture.

US upbeat on Ukraine corn exports, Russia wheat sells cheap

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  U.S. officials are optimistic about Ukraine corn exports for 2015-16.

  From WATTAgNet:
  U.S. officials are optimistic about Ukraine corn exports for 2015-16. Meanwhile, Russian wheat is selling competitively to Egypt and Iraq, according to reports.
  Ukraine
  The U.S. Department of Agriculture (USDA) bureau in Kiev forecasts Ukraine corn exports in 2015-16, on an October-to-September basis, at 18.0 million tons.
  That is a small increase from the 17.5 million tons the USDA estimates for this season.
  The USDA's official forecast is for Ukraine to ship 16.0 million tons next season. Ukraine, since 2011-12, has emerged as the world's third-ranked corn exporter, and is a growing rival to the U.S. and Brazil.
  Russia
  Russian wheat was the cheapest offered to an Iraqi tender recently.
  Russian wheat was priced for the Iraqi Grain Board tender as low as $231 per ton, on cost and freight free out (ciffo) basis, with further cargos offered at $233 and $236.50 per ton, traders said.
  The prices -- for hard wheat of 11 percent protein at a moisture level of 12 percent -- compared with $266 per ton for Canadian wheat, and $267.50 per ton for Australian grain, also on a ciffo basis.
  US wheat was offered at $285.42 a ton.
  Also, in a recent tender, Russia won a piece of two tenders for lower-quality milling wheat undertaken by Egypt’s Gasc. 

Philippines: Our corn not good enough to compete globally

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  The Philippines Department of Agriculture says that it believes it is not good enough to compete in the world market.

  From WATTAgNet:
  The Philippines Department of Agriculture says that, despite good-quality corn that is being produced in the Bicol region, it believes it is not good enough to compete in the world market.
  “There is a need for our corn farms to be Good Agricultural Practices (GAP)-certified so that they qualify as source of safe and quality products for both the domestic and world market, especially that the ASEAN Economic Community (AEC) is set to be integrated this year,” Abelardo Bragas, the DA regional executive director, said.
  The united aim of ASEAN is to achieve a single, open market for the products and services of its member countries. Understanding the need for manufacturing and production efficiency to make this work in practice, the agribusiness industries in each country are currently investing to improve their ability to compete with regional rivals.
  The ASEAN region will have free flow of capital and movement of goods, services and investments and skilled labor. GAP certification gives farmers the ability to sell corn and other agricultural products to other member states.
  GAP certification is voluntary in the Philippines, and only a few farmers have responded to it. However, in other countries such as Thailand, Indonesia and Japan, GAP certification is mandatory.
  GAP requires that corn must have 14 percent moisture content and that the aflatoxin content is lower than 20 parts per billion for human food and 50 parts per billion for animal feed ingredients.

Ukraine corn exports up 21 percent

As of February 3, Ukrainian corn producers exported 7.95 million tons of corn — 1.4 million tons more than 2012 in a year-on-year comparison, according to the Agrarian Ministry of Ukraine. Following the world's leading corn exporters — the U.S., Argentina and Brazil — Ukraine has become a top corn supplier among European countries.
In 2012, Ukraine produced about 20 million tons of corn; more than half of it the country is ready to sell to foreign buyers, said Ukrainian agrarian minister Mykola Prysyazhnyuk. Major consumers of Ukrainian corn in January–November of 2012 were Belgium, Egypt, Ireland, Italy, Portugal and Spain.
In 2012, Ukraine began cooperation with China, the world's largest corn consumer, regarding the supply of corn. The eastern Asian nation plans to buy approximately 3 million tons of Ukrainian corn per year. To help boost Ukraine's corn production, in July 2012, China provided a US$3 billion loan for Ukraine's agricultural sector. The loan is intended to finance the increase of the trade volume, raise productivity and stimulate equipment modernization in the Ukrainian agricultural sector. With the money Ukraine will be able to purchase crop-protection agents, seeds and equipment from China, as well as invest in land cultivation and set up a plant for organic fertilizer processing and crop-protection agent production.
Currently, Ukraine has a 12.9 percent share of the global corn market. In 2011, Ukraine took the third spot in the global corn supplier rating, being the second runner-up to the U.S. and Argentina.

Argentina to approve more corn exports

The Argentina government will approve at least 3 million metric tons more in 2012–2013 corn exports, according to Agriculture Secretary Lorenzo Basso.
Forecasting a harvest of at least 26 million metric tons, Basso said the additional export quota will be granted late in January or in February, once the government has a more accurate forecast for overall production. The government has already freed 15 million metric tons of 2012–2013 corn for export and 8 million metric tons is needed for domestic consumption.
The U.S. Department of Agriculture forecasts an Argentine crop of 28 million metric tons. To reach that target, the South American country needs rain before the end of January — rain they may not get, say country meteorologists. This is a change from August through December 2012, when some areas were actually lost to flooding.

Ukraine corn exports up 20 percent in December

Ukraine's corn exports increased 20 percent in December 2012 over November 2012 numbers, to 2 million metric tons, according to the country's Agriculture Ministry.
Total grain shipments in December were 2.4 million metric tons, and grain exports totaled 14.5 metric million tons for the marketing year begun July 1, 2012. Corn accounted for 6.3 million metric tons of those shipments, according to the ministry. Wheat accounted for 5.9 million metric tons, while barley accounted for 1.8 million metric tons. 

Ukraine looks to export corn to US

Ukraine is looking to begin exports of corn to the U.S., taking advantage of the recent U.S. drought that left domestic supplies short, according to the country's Agriculture Minister Mykola Prysyazhnyuk.
Being able to export to the U.S. would verify that Ukraine's corn meets appropriate global standards, said Prysyazhnyuk. The two countries are currently discussing sanitary requirements.

Ukraine increased its corn plantings for the 2012 harvest by 26 percent to 4.4 million hectares, according to government data. Ukraine plans to export about 12 million metric tons of corn in the year ending August 31, 2013. Overall, it plans to increase its corn plantings by another 5 percent to 7 percent in 2013.
The country's domestic corn stockpiles declined as of December 1 to 11.2 million metric tons from 13.9 million tons in 2011.

China pork demand could lead to record corn imports

If current trends in China's pork production and industrialization continue, the country's corn imports could approach 20 million metric tons per year within a five-year time frame, according to a report released by Rabobank's Food and Agribusiness Research and Advisory Group.
China has recently been importing over 0.4 million metric tons of pork per year, in a world market with trade of less than 7 million metric tons per year. China is likely to continue to be an importer of both pork and corn for the foreseeable future, said Rabobank, but how much of each will depend on improvements in the supply chain. China's pork supply chain is in a transition period, shifting from traditional household farming to modern commercial systems. While both farms and processing plants are growing in size, coordination between the two remains undeveloped, according to the report.
The pace and success of the industrialization that is taking place across China's pork sector will be a major determinant of whether China will move back towards self-sufficiency or become an even bigger importer, said Rabobank. If China can improve its corn yields and swine feed conversion ratios towards U.S. levels, then goals of self-sufficiency are achievable. If China does not have to import pork, it will need to import corn, and if current trends in China's pork production and industrialization continue, corn imports will rise significantly.

China corn demand up in spite of high prices

Corn shipments to China grew 36 percent in July to reach a six-month high, and imports in the first 10 months of the 2011–2012 marketing year totaled 4.2 million tons compared with a record 4.3 million tons in the whole of 1995–1996, according to data. These numbers come in spite of high corn prices and a 13 percent drop in U.S. production.
"The (U.S.) corn yield is likely to be below what the [U.S. Department of Agriculture] is currently forecasting," said Bill Barbour, an investment specialist for the DWS Global Agribusiness fund. "There's a risk that some of the supply-chain managers may not actually be able to deliver grains to their customers." But demand from China remains strong, and Asian countries in general may be the ones to sustain demand for food while costs increase and economic growth slows, said Barbour.
Corn prices hit a record $8.49 per bushel on August 10.

Brazil may export corn to China

Brazil is awaiting final approval to become an exporter of corn to China, adding the Asian country to a list of global customers that already includes the Middle East and various European markets, according to reports.
Chinese technicians visited Brazil in March to assess the phytosanitary risks of Brazilian corn, a protocol required to open trade channels in a food commodity. Typically, pest and disease risks from imports are documented and some restrictions on origin of the commodity may be imposed.
Brazil has produced a surplus of corn over the past few years, which has enabled it to export about 8 million to 10 million metric tons per year. Brazil is expected to produce a record 67 million-metric-ton crop in 2012 and export 11 million metric tons, according to the ministry's food supply agency Conab.

China corn purchases from US increase to 4 million metric tons

China has purchased 120,000 metric tons of U.S. corn for shipment by the end of August, bringing the country's total confirmed purchases this season to nearly 4 million metric tons, according to reports.
Another 120,000 metric tons were sold to an unknown purchaser for delivery in the next September-to-August marketing year, and is believed to be to China, as well, said analysts and traders. China has bought 1 million metric tons of corn from the U.S. in the last two marketing years as the country's demand has outpaced its domestic production, and the U.S. Department of Agriculture predicted that it would import a 17-year high of 4 million metric tons in the 2011–2012 marketing year. That number may now be revised, to 4.287 million metric tons, said analysts.
Confirmed sales to China for the 2011–2012 year currently stand at 3.92 million metric tons, but the number could be higher if any of the "unknown" sales are to China.

Argentina to export extra 2 million tons of corn

Argentina's government has authorized an additional 2 million metric tons of corn for export in response to farmers' requests for an increase in the quota due to a record 30-million-metric-ton 2011-2012 crop.
The additional corn, harvested from the 2010-2011 season, brings the total shipment to 16.6 million metric tons, and an additional 1.5 million metric tons of corn may be exported in January, according to Agriculture Undersecretary Oscar Solis. An additional 2.7 million metric tons of wheat have also been authorized for export, bringing the current season's exports to a record.

China purchases 900,000 metric tons US corn

China has purchased 900,000 metric tons of U.S. corn, one of the country's largest purchases ever of the grain on overseas markets, according to reports.
The purchase comes in the wake of an expected record grain harvest in China. The country's corn consumption likely totaled 176 million tons in the crop year beginning October 1, 2010, according to the U.S. Department of Agriculture. "China's harvest is up but that will just about satisfy domestic demand," said Hanver Li, chairman of the market research firm Shanghai JC Intelligence Co. Ltd. "Meanwhile, reserves are running low, so China needs to import corn to build up their stocks."
According to Li, China may import between 7 and 10 million metric tons of corn over the next 12 months. China's total corn imports could climb to as much as 15 million metric tons by 2015. China was a net exporter of corn until 2003, leveling out in 2009 and becoming a net importer in 2010.

France corn harvest estimates up after summer rains

France’s corn harvest will be higher than previously expected after summer rain boosted production, allowing for increased exports, according to crops office FranceAgriMer.
Current forecasts predict that farmers will harvest 14.75 million metric tons of corn, compared to 2010's 13.8 million metric tons and up from the previous estimate of 14 million metric tons. Corn futures in Paris have dropped 19% in 2011, and weekly corn-export commitments for the 27-nation bloc were 202,515 metric tons in the seven days through October 4, the highest level for one week in at least seven years, according to the EU.
Corn exports are expected to climb to 6.49 million metric tons from 5.6 million metric tons in the 2010-11 season, FranceAgriMer estimates. This number is up from a previous outlook for shipments of 6.29 million metric tons. 

Taiwan to purchase corn, soybean crops from US over next two years

Members of the Taiwan Agricultural Trade Goodwill Mission have agreed to purchase between $4.1 billion and $5.12 billion worth of crops from six U.S. states over the next two years.
The deal calls for Taiwan to buy locally grown corn and soybeans from Wisconsin, Illinois, Indiana, Iowa, Ohio and Virginia, in an effort to strengthen import and export relations between Taiwan and the United States. The group said in its pledge that it needs between 103 million and 110 million bushels of soybeans in 2012-13, with the value expected to range from $1.61 billion to $1.73 billion. The group also intends to purchase between 303 million and 413 million bushels of corn over the same period, as well as up to 750,000 bushels of corn by-products, in a deal worth an estimated $2.5 billion to $3.4 billion.
"Trade agreements like this between Taiwan and Wisconsin are an important part of what both countries must do to remain competitive in our global economy," said Wisconsin Governor Scott Walker. "Taiwan was Wisconsin's largest export market for corn] and fourth largest export market for soybeans last year. It is important to maintain strong relations with our sister state of Taiwan, and I thank members of the delegation for their visit to our great state."

Taiwan feed association to purchase US corn, co-products

Leaders from Taiwan’s Feed Industry Association have signed a formal letter of intent announcing plans to purchase between 7.7 million metric tons and 10.5 million tons (303 to 413 million bushels) of U.S. corn and a half to three-quarters of a million tons of corn co-products such as distillers dried grains and corn gluten in 2012 and 2013.
"For U.S. farmers, Taiwan is a long-established and deeply valued customer and partner," said U.S. Grains Council Past Chairman Terry Vinduska. "Taiwan is the sixth-largest export market for U.S. agriculture, and our fifth-largest corn market." The value of the Taiwanese corn purchase commitment is estimated to total from $2.47 billion to as much as $3.39 billion.
The Taiwanese delegation, which also included representatives from Taiwan’s oilseed processing association and flour millers’ association, signed similar letters outlining their intent to purchase 3 to 3.2 million tons (110-118 million bushels) of U.S. soybeans and 1.7 million tons (62 million bushels) of U.S. wheat.
Taiwan, with the second-highest per-capita consumption of U.S. agricultural products in the world, imported 2.4 million tons (94 million bushels) of U.S. corn in the 2010/2011 market year. 

China corn imports may more than double in 2011

China imported 540,000 metric tons of U.S. corn in the year beginning September 1.

China's corn imports may reach 5 million metric tons by the end of 2011, more than doubling the 2 million metric tons the country imported in 2010, according to Abdolreza Abbassian, senior economist with the United Nations' Food & Agriculture Organization.
The country is attempting to boost stockpiles and slow the country's fastest inflation in three years, which currently sits at 6.4%, according to reports. China bought 540,000 metric tons of U.S. corn for delivery in the year starting September 1 and an additional 300,000 metric tons was sold to unknown destinations. This brings the amount of corn sold by exporters without declaring a destination to about 2.5 million metric tons, initiating speculation that the product was bought by China and suggesting that the country is already at roughly 3 million metric tons of imported corn for the year.
Corn traded at $6.5575 a bushel at 4:40 p.m. in Singapore on June 12 after rising 4% when the U.S. Department of Agriculture lowered their estimates on global stockpiles.

US corn growers support free trade with Korea, Colombia, Panama

The National Corn Growers Association supports the pending free trade agreements with Korea, Colombia and Panama, said NCGA CEO Rick Tolman in a statement to the U.S. House Agriculture Committee.
“Increased production and a consistent product make the United States a reliable supplier of corn in the world market," he said. "Beyond increasing domestic and international demand for corn, passing these FTAs also benefits our customers in the livestock and poultry industries. Developing new markets for our country’s agricultural products will help our sector lead the nation in economic growth and international competitiveness." The full text of the NCGA statement can be found at http://agriculture.house.gov/pdf/hearings/Tolman110512.pdf

China to limit use of corn in non-feed projects

Corn processing industries are expected to consume 50 million tons of corn in the current marketing year — roughly 29% of the country's total corn output in 2010, said the CNGOIC.

China is making plans to limit the use of corn and edible oils in non-animal-feed projects to secure the country's grain supplies, according to a report by China's top economic planner.
Corn is a particular focus, as ethanol, starch and sweeteners consume roughly one-third of China's corn output, leading to concerns about shortages for feed millers. Corn processing industries in China currently have an annual capacity of 70 million tons, according to Shang Qiangmin, director of the China National Grain and Oils Information Center. The industries are expected to consume 50 million tons of corn in the current marketing year — roughly 29% of the country's total corn output in 2010, said the CNGOIC.
Beijing has ordered banks to stop lending to corn purchasers and has canceled tax breaks for corn processors to limit their expansion, according to reports.

South Africa corn exports to reach E2,340 per metric ton

South Africa corn exported to Swaziland will reach costs of E2,340 (US$330.56) per metric ton, up from E2,000 (US$282.53), according to Swaziland's National Maize Corporation, and prices are expected to continue increasing throughout the season due to an anticipated poor harvest and bad weather.
The NMC imports roughly 3,000 metric tons of corn for Swaziland from South Africa each month. “Consumers must brace themselves for a continued price increase of maize throughout the year," said NMC CEO Sipho Nxumalo. "Locals are failing to meet the year’s demand, hence we import from South Africa to try and meet the demand. South African maize prices have changed and we are compelled to increase the prices here."
Local farmers produce 75,000 metric tons of corn, but imports of at least 40,000 metric tons are still necessary to satisfy demand.