Markets Firm After Broad Sell-Off

Strategie Grains Ups E.U. Corn Production Forecast

• Strategie Grains reported Thursday that it sharply increased its forecast for this year’s corn crop in the European Union.

• In its monthly grain report, the consultancy projected 2021/22 corn production at 67.5 million tonnes, up from 64.9 million in last month’s report.

• Harvest has seen a slow start in some countries, but yields have been good, prompting the revised estimate.

• The higher production outlook has also led Strategie to trim imports to 13.9 million tonnes from 14.4 million.

• Regardless, E.U. stocks are expected to remain tight, as competitive corn prices versus wheat and barley were attracting greater corn use in livestock feeds and biofuels.

FBN’sTake On What It Means:The consultancy sees higher production and lower imports for corn in the E.U. then does the USDA, which sees production at 66.3 MMT and imports at 15 MMT. However, it warned that high commodity costs could curb demand going forward, and a slow harvest has helped shoot grain prices higher. Corn harvest is well behind in France and Ukraine on slow crop growth from cool spells earlier this year and heavy rains slowing fieldwork.

Mexico’s Ag Minister says Mexico Will Not Limit GMO Imports

• In a meeting with U.S. Ag Secretary Tom Vilsack, Mexico Ag Minister Victor Villalobos said Mexico will not limit imports of GMO corn from the U.S.

• Mexico published an executive order last year that sought to ban the use of GMO corn for human consumption in three years and pledged to substitute imports with local production.

• Mr. Villalobos affirmed that the country would not allow the cultivation of GMO corn but would allow imports from the U.S.; Mexico is the number two buyer of U.S. corn after China.

• The minister’s comments come on the heels of Mexico’s Supreme Court denying appeals against the ban on sowing GMO corn and the use of glyphosate.

FBN’sTake OnWhat It Means:Mexico imported 16 million tonnes of corn from the U.S. last year, almost all of it genetically modified, and is poised to import a record amount this year. While self-sufficient in terms of white corn, it is unlikely Mexico will grow enough yellow corn to meet its demands by 2024. Also during the meeting, Mr. Vilsack said seeds and patents are the next thing the USDA will examine under a Biden administration order on competition.

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- - - - - -Kevin McNew