cornfield. Photo: University of Minnesota
Bloomberg writer Tarso Veloso Ribeiro reported yesterday: “The first ship to transport Brazilian corn to China is scheduled to set sail on Wednesday following a deal earlier this year between the two nations.
“The Star Iris is anchored in the port of Santos, loaded with approx 68,000 tons of grain for Chinese trader Cofco Corp.according to the shipping company Alphamar.
“China made the decision to buy Brazilian grain again in May partly to Reduce dependence on the US and Replace shipments from Ukraine cut off by the Russian invasion. In OctoberChina approved over 130 facilities for export. The US accounted for about 70% of Chinese purchases in the 2020-2021 season.”
Ribeiro explained: “The market was expects imports to start in Decembersince the US had just finished harvesting a crop. But because US corn is the most expensive in the worldnot only the first exports take place ahead of the expected pace, but total imports could also be higher.”
Also yesterday, Reuters contributors Roberto Samora and Ana Mano reported: “Brazilian corn exports could grow exponentially next year when farmers reap a full crop and Chinese demand is strongthe Brazilian Association of Grain Exporters announced on Tuesday.
Brazil is poised to export 40-50 million tons of corn next year, boosted by a new trade protocol with China and a potential bumper crop, Sergio Mendes, general manager of the group known as Anec, said in an interview.
“In 2023 alone, Brazil could export up to 5 million tons of corn to Chinamaking it a major supplier to the country alongside the United States. China’s import requirement is 18 million tons for the 2022/2023 cycleaccording to the US Department of Agriculture.”
In other news on corn exports, Bloomberg contributors Eric Martin, Mike Dorning and Maya Averbuch reported yesterday: “Mexican President Andres Manuel López Obrador signaled that he was softening his stance about a planned ban of a US corn variety under pressure from the US government.
“AMLO, as he is also known, said on Tuesday that he is consider allowing the import of genetically modified yellow corn as animal feed. That is a change in tone from previous government statements to phase out GM corn by early 2024.”
The Bloomberg article added: “If Mexico followed AMLO’s recent comments on the corn dispute, it would Relief for US farmershow Mexico is their second largest export market. The issue has mobilized President Joe Biden’s administration, as well as policymakers in key corn-growing states, including Iowa Senators Chuck Grassley and Joni Ernst.
“The US Department of Agriculture will continue to hold discussions with Mexican officials about the critical importance of the bilateral trade relationship,” a spokesman said. USTR did not immediately respond to requests for comment on Lopez Obrador’s remarks.”
In other production news, Financial Times writer David Feliba reported yesterday: “Last year Argentina products charged 8th percent of global exported wheat, 18.5 percent of Corn exports and 40 Percent of exports of Soybean oil and meals.
“It produced 22:15 mins metric tons Wheat in the 2021/22 season, of which 16.25 million were exportedalmost as much as Ukraine has 18.8 million.
“But the wide-ranging effects of this season’s drought have led to severe cuts in estimates. The US Department of Agriculture now expects production of 15.5Mt while local exchanges forecast just 11.8Mt.”
Elsewhere, Bloomberg writer Sybilla Gross reported yesterday: “Flooding in eastern Australia is affecting the quality of the wheat crop in one of the world’s largest exportersexacerbating the global shortage of high-quality varieties used to make bread and ramen noodles.”
In other news, DTN Ag Policy Editor Chris Clayton reported yesterday: “The White House clarified Monday that a railroad closure is “unacceptable” to President Joe Biden as farming groups and other business lobbies continue to call for congressional intervention.
“When asked about the four main union voices against a deal negotiated by Labor Secretary Marty Walsh in September, White House spokeswoman Karine Jean-Pierre reiterated the president’s stance.
“‘As the President has said from the beginning, a closure is unacceptable because it would harm jobs, families, farms, businesses and communities across the country,’ Jean-Pierre said Monday.”
Also yesterday, Reuters writer Stephanie Kelly reported: “A group of oil, renewable fuel and agricultural trade organizations have come together for the first time Expressing support for US legislation that would expand E15, a higher ethanol gasoline blend, nationwide, according to a letter from the group.
“Organizations such as the American Petroleum Institute (API), the Renewable Fuels Association and the National Farmers Union wrote to convention leaders urge them to pass legislation that would effectively remove restrictions on E15 sales.
“API’s support is a win for the biofuel and farm groups because the oil industry has at times resisted efforts to expand the market for ethanol.”
Meanwhile, Ian James reported on the front page of today’s Los Angeles Times: “California has just endured the state’s driest three-year period on record, and this year the drought has pushed fallow land use to a new high.
“In a new report on the economic impact of the drought, researchers estimated that California’s irrigated farmland was shrinking 752,000 hectares or almost 10% in 2022 compared to 2019 – the year before the drought. That was based on an estimate 563,000 Morning fallow farmland last year.
“Almost all of the farmland that has been left unplanted and dry is in the Central Valley, and much of it in the northern half of the valley. The state’s main rice-growing areas in Sutter, Colusa and Glenn counties were particularly hard hit, with about 267,000 acres left fallow this year, according to the report.”