Egypt stimulates the purchase of South American corn
Egypt actively importing not only wheat, but also corn, total exports in 2018 amounted to 9.1 mln tonnes, which almost corresponds to the level in 2017.
the Main suppliers of corn to Egypt to 2018 are:
Ukraine - 2.5 million tons (against 2.6 million tonnes in 2017),
Brazil - 2.2 million tons (against 3.1 million tonnes in 2017),
United States - 1.8 million t (against 2 million tonnes in 2017).
- Argentina is 2.7 million tonnes (against 2.9 million tons in 2017),
In December-January seasonal reduced demand for maize from poultry, so imports have fallen to 700 thousand tons, which allowed to reduce the excess on the domestic market, where due to the large volume of proposals corn 3-4 blocks sold $10-20/ton below cost.
since January, the import will increase to 800 thousand tons, and now to Egypt sent 4-5 ships with Brazilian corn, although Egypt bought a lot of Ukrainian corn, which is due to significant proposals were cheaper.
Usually Brazil in January completes shipment of corn, however in the current season due to strong exports of soybeans in the country there are large stocks of grain, therefore, the proposal remains at a high level. And in March in the Egyptian market will return to Argentine corn is new crop, which will increase competition.
the Main consumer of Ukrainian corn remains the EU, which this season acquired 13.4 million tons of grains, which is 45% higher compared to the previous year, while the USDA estimates the imports at 21 million tons, the Share of Ukrainian maize amounted to 52.6% of total imports, which is 135% higher than last season.
the Growth of prices for Ukrainian corn to 180-185 USD/MT FOB worsen its competitiveness.
March corn futures in Chicago remain at the level of 149,36 $/tonne, despite an active export. For the week, the United States increased corn exports by 9.2% to 1.1 million tonnes, which is 53% higher than the corresponding period last year. Since the beginning of the season, the US exported 20 million tonnes, 8 million tonnes higher than in the previous season on that date, whereas USDA forecasts exports at the level of 62,2 million tons.