The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
The FBN Team provides a macro-focused daily view of the world’s grain markets. Kevin McNew received a bachelor’s degree from Oklahoma State University and his master’s and Ph.D. degrees in Economics from North Carolina State University. He spent 10 years as a Professor of Economics with the University of Maryland and Montana State University focusing on commodity markets and is widely regarded for his ability to boil-down complex economic situations into easy-to-understand concepts for applied life.
South Koreans Continue Buying Spree
South Korea’s KOCOPIA bought about 60,000 MT of US corn this morning.
Yesterday, two groups from South Korea bought a combined 202,000 MT of optional origin corn and prior to that two other groups bought 192,000 MT. That brings the 7-day total to 452,000 MT.
Brazil’s export prices have surged 18 cents a bushel relative to US prices in recent weeks, with the Brazil port price trading at a 14-cent premium to US values. This time last year Brazil traded at a 32-cent per bushel discount to the US.
French Corn Crop Struggles
France’s corn crop is off to a bumpy start as excessive rain and hail have caused problems for the newly planted crop.
According to the state agency FranceAgrimer,77% of the crop is in good/excellent condition, a steep slide from last week’s reading of 84%. A series of storms since last May have brought torrential rain and hailstones to parts of France, causing localised flooding.
France produces about 25% of the EU’s corn crop with most of it being exported to other EU countries
Ukraine/Russia Crops Continue to get Downgraded
Ukraine’s wheat crop continues to struggle as the crop has received no meaningful rain since April and none is in the forecast for the next 7 days.
Severe drought in eastern and southern regions could shrink Ukraine's 2018 wheat harvest by 15-30 percent below original forecasts, the state hydrometeorological centre said on Friday.
Russian agriculture consultancy IKAR said on Friday it had downgraded its forecast for Russia's 2018 wheat crop to 71.5 MMT from 73.5 MMT previously.
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