From S&P Global Platts, January 17:
China's LNG imports are in focus this week, after the country's bumper offtake in 2021, while in the US, upstream operators are having to be more creative to extract shale oil from older plays. Plus, a look at trends in the corn and rice markets.
....3. Dry weather conditions push up local corn prices again in Brazil
What's happening? Corn prices in Brazil have started rising again, reaching levels seen in August 2021. Drought in Brazil's southern states has hit first corn crops and yield is seen lower than the initial expectations. Producers have become reluctant to sell, while consumers need to replenish their stocks, driving prices higher. Since the bulk of the corn supply for feed manufacturers comes from the southern states during this period, these are likely to be eager to secure feed inputs despite the record corn output projections for 2021-22.
What's next? Dry weather is also affecting corn crops in Argentina. Although Brazil is among the world's largest exporters of corn, the southern states often import from Paraguay and Argentina as it is cheaper than transporting corn from the Midwest region of Brazil, where the bulk of the country's corn crop is grown. If the dry weather conditions persist in Argentina, corn supply could tighten in the short term for Brazil, which in turn would offer support to local corn prices....
....MUCH MORE
