A sudden spike in corn prices is a result of China buying US corn wheat prices being up. May USD 249.67/MT; Jul USD 243.13/MT and Sep USD 223.84/MT. Corn Prices on FOB basis were also reported up. US Gulf for the period Apr-Sep’23 indicated at USD 286-276/MT; FOB PNW indicated at USD 312-301/MT. US Corn #3 UDS 305-300/MT (Jul), up USD 5/MT.
While reports suggest that La Nina has officially ended, but 2023 will be an El Nino year, as reported by World Meteorological Organization, and could effect harvest in Southern Hemisphere. India has already seen some abnormal weather events in Feb-Mar 2023 – colder than normal seasons, unseasonal rains and higher summer temperatures are predicted.
Other origin prices were as under (Apr-Jun’23)
Argentina USD 290-260MT (Jul); Brazil USD 290-265/MT (Jul); FOB Ukraine USD 245-250/MT.
Argentina corn production, new estimates 36 MMT crop. US shifts corn purchases to US and Ukraine (Out from Brazil). Domestic use of Brazil corn for fuel ethanol as projected is likely to be higher and Brazil could produce 6 billion liters of ethanol from corn in 2023 and the market share will be up at 19%.
Other grains, US Sorghum prices FOB Texas were indicated at USD 340-331/MT (Apr-Jun)
Barley prices were as under
France USD 288-291/MT; Argentina USD 320-325/MT; Black Sea USD 265-270/MT; Australia USD 275-285/MT. Barley purchases continue in MEA region, with Jordan buying another 50,000 MT for sep delivery.
DDGS prices remain steady and up, due to strong domestic demand and higher corn prices. FOB prices at US Gulf were indicated at USD 346-340/MT, (Apr-Jun); FOB PNW at USD 360-357/MT.
US DDGS delivered prices to the region, Vietnam USD 389-387/MT; Thailand 402-398/MT; Myanmar USD 385-383/MT. Prices of CGM on FOB basis were indicated at USD 795/MT and CGF at USD 295/MT. Some protein prices, including CGM were down as SBM prices were down.
Freight rates (Bulk) are steady , US Gulf to India at USD 47/MT; Argentina to India USD 62/MT; Argentina- Bangladesh at USD 66/MT; Black Sea to Bangladesh (Russia USD 47/MT and Ukraine USD 54/MT).
Source: Amit Sachdeva (U.S. GRAINS COUNCIL )
