WORLD MARKETS AND TRADE :
COMMENTARY AND CURRENT DATA
COARSE GRAINS: WORLD MARKETS AND TRADE
China's Corn Balance Sheet Changes: Production for
2005/06 and 2006/07 has been revised upward by a combined 8.4 million tons, most
of which raised domestic use (feed and industrial). Last month, a private
Chinese corn processor signed a contract for the purchase of 52,000 tons of U.S.
Domestic: May export bids for #2 yellow corn were up $3
per ton to $111. Bids for #2 yellow sorghum (Texas Gulf) were up $5 to $114 per
ton (See PDF for chart).
Corn prices continue their nearly 2-year ascent and are currently supported by
strong export sales and record domestic demand, especially for ethanol.
Sorghum prices have returned to a premium to corn and are
underpinned by food aid business and by the corn market.
TRADE CHANGES IN 2006/2007
- Russian barley is raised 500,000 tons to 2.0 million on a larger
- Tunisia barley is raised 300,000 tons to 500,000 and Morocco barley
is raised 150,000 tons to 400,000 as a result of smaller expected production
in these markets.
- Indonesia corn is doubled to 800,000 tons based on lower production.
- Russia rye is doubled to 100,000 tons as production is forecast at the
lowest level on record.
TRADE CHANGES IN 2005/2006
- United States corn is up by 1.5 million tons to 53.5 million, the
highest in 11 years, with a continuing rapid pace of sales and shipments while
competition from China and Argentina remains muted.
- Russia barley is raised by 300,000 tons to 1.6 million as late-season
exports have been stronger than anticipated.
- China corn is down by 1.0 million tons to 4.0 million, the lowest in 7
years, because of the absence of significant new sales.
- EU-25 corn is cut by 200,000 tons to 100,000 in the absence of
- EU-25 barley is lowered by 400,000 tons to 2.9 million on the slow
issuance of export licenses or sales of intervention supplies for export.
- EU-25 rye is raised by 150,000 tons to 450,000 as a result of large
recent sales of intervention supplies for export.
- Indonesia corn is up 200,000 tons to 1.0 million based on lower
production and purchases to date.
- Japan rye is up 100,000 tons to 350,000 on expected continued strong
shipments from the European Union.
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Monday, June 12, 2006