WORLD MARKETS AND TRADE :

COMMENTARY AND CURRENT DATA

Barley: Morocco’s imports are likely to continue at a rapid pace to offset lower production and relatively poor pasture conditions in 2005. In May, the government temporarily abolished the 7 percent value-added tax and the 35 percent import duty on barley through December. A similar measure was taken in 2001 and imports consequently reached 700,000 tons for the year, the second highest level in over a decade. There are already indications that purchases have been strong throughout the first half of the 2005/06 marketing year.

Sorghum: A data series for Bolivia was added this month.

Domestic: September export bids for #2 yellow corn averaged nearly $96/MT, down $3 from August. September export bids for #2 yellow sorghum (Texas Gulf) dropped about $3 to average just over $97 /MT (See PDF version for chart).

Sorghum and corn prices remain similar and are close to those of a year ago. Harvest pressure has reduced prices.

• Argentina corn is down 300,000 tons to 13.2 million due to a reduction in acreage.

• Brazil corn is cut by 200,000 tons to 800,000 as rising domestic consumption reduces exportable supplies.

• South Africa corn is reduced 200,000 tons to 1.8 million based on a smaller crop forecast.

• Ukraine corn is raised 500,000 tons to 1.6 million due to larger crop prospects.

• Turkey barley is raised 100,000 tons to 200,000 based on recent government sales.

• Brazil corn is raised 200,000 tons to 1.0 million because of increasing feed demand.

• Zimbabwe corn is up 100,000 tons to 300,000 based on a smaller crop projection.

• Morocco barley is raised 200,000 tons to 600,000 because of strong demand and the temporary elimination of barley import taxes.

• China corn is raised 300,000 tons to 7.3 million based on pace to-date.

• Canada barley is raised 200,000 tons to 1.5 million based on continued strong sales.

• Russia barley is raised 300,000 tons to 1.3 million on strong sales to the Middle East and North Africa.

• South Korea corn is up 200,000 tons to 8.5 million on the basis of shipments to-date.

• Syria corn is increased 200,000 tons to 1.6 million based on shipments to-date.

• Morocco barley is raised 100,000 tons to 500,000 with strong demand in expectation of a sharply reduced new crop.

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Last modified: Thursday, October 13, 2005