December 10, 2008

Updates on world feed grain market

Last week, corn quotes on the Chicago Board of Trade decreased by US$14.56 down to US$131.5 per million tonnes.
The market was pressed by the wheat trade plummeting along reports that South Korea may reduce its import of American corn in favour of purchases of Black Sea feed wheat.

A purchase of 120,000 tonnes of American corn by Mexico in addition to previously announced 330,000 tonnes can be mentioned as a supportive factor.

US private exporters reported to the US Department of Agriculture about their sale of 330,000 tonnes of corn with delivery to Mexico. About 210,000 tonnes out of the total volume will be shipped in 2008/09 and 120,000 tonnes in 2009/10.

Argentina exported 930,000 tonnes of corn in October 2008 which was less than 1.253 million tonnes shipped in October 2007. Corn exports have totalled 14.618 million tonnes since early this year against 14.048 million tonnes in 2007. The Argentine Agriculture Agency (ONCCA) reported that no corn from the old crop remains for export any more.

The Ukrainian feed grain market did not change. Supplies of feed wheat and corn remained high while demands remain low. Compound feed producers bought grain by small parcels.

Buyers try to press the prices down but farmers hold back their sales, considering the current price level as extremely low.

India has already sold about 100,000 tonnes of the new crop corn, mainly in containers. A bargain was also made by India to ship 20,000 tonnes of optional origin corn to Malaysia for US$200 per tonne.

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