For grain maize
Bottom Matif not reached for the time being
While the American futures market for grain maize manages to remain stable, the Matif in Paris is looking for a bottom. The feed market is less interested in maize, but this is partly absorbed by other buyers.
The CBoT has been moving at a level of $138 per tonne since mid-December. In the new year, $1 has been deducted. The situation on the Matif is very different. Since the turn of the year, the contract for the March period has been in effect. From the starting quotation at €159,25, €3 per tonne is still left halfway through week 151,50. It seems that the bottom has not yet been reached.
1,32
billion sek
Less export by Russia
The USDA Department of Agriculture expects Russia's importance as an export country to decline in the 2017/2018 season. The size of the harvest has been adjusted downwards. Brazil expects a lower export level. That's in the January WASDE report† The harvest in the South American country is good. The closing stock is expected to increase by 2,5 million tons to 206,6 million tons. The USDA estimates world production at 1,32 billion tons.
The processing of maize into glucose and dextrose in the United States (US) was higher than previously thought between September and November. In the WASDE report, this item is therefore increased by 10 million bushels, while the animal feed item has a minus of 25 million bushels. The closing stock rises by 40 million bushel.
Political Barter
Corn is also part of the political theater between Brazil and the US. Brazil's Agriculture Minister Blairo Maggi said on Jan. 16 that the ministry is considering lifting the tariff (20%) on ethanol from the US. Maggi uses the gesture so that Washington hopefully lifts the ban on imports of fresh beef from Brazil.
Brazil started levying the import tariff on all ethanol from the US in 2017, which falls above the annual quota of 600 million liters. The US then locked its borders to Brazilian beef over a food safety scandal. According to Maggi, there is a great desire from the US to remove the import tariff.
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The price of grain maize moves within a range of $136 and $139 per ton.This article is part of the Grains & Raw Material, Milk & Feed and Pigs & Feed subscription. Insiders have exclusive access to the Database with current and historical market figures.
Niels van der Boom
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