Feed: Cheap Brazilian corn bound for U.S.

CNS Canada –– Following are a few highlights in the Canadian and world feed grains markets on Tuesday, Oct. 27.

• CBOT corn futures were weaker on Tuesday, with the December contract quoted at US$3.8025 per bushel at midsession, as the advancing U.S. harvest weighed on values.

• Sorghum production in Mexico “has been plagued with a serious sugarcane aphid infestation,” according to a report from the U.S. Foreign Agricultural Service. The agency predicts declines in Mexican sorghum and rice production compared to earlier estimates, a rise in wheat, and a steady corn crop.

• While the U.S. is in the midst of harvesting its own large corn crop, South America is also sitting on big supplies and the strong U.S. dollar compared to the Brazilian real is making it profitable for the U.S. to import corn from the South American country. A boat carrying 54,000 tonnes of Brazilian corn is reportedly on its way to North Carolina this week.

• The European Union’s MARS crop monitoring service has raised its yield estimate for the 2015 corn crop to 6.47 tonnes per hectare, from 6.43 tonnes per hectare estimated in September. Soft wheat and barley yields in the EU were also revised higher. Looking ahead to 2016, MARS said adverse weather may cause problems for winter wheat crops in the eastern and northern parts of the EU.

• Feed barley bids in the key cattle feeding area of Lethbridge are in the C$210-$216 per tonne area, according to provincial reports. Feed wheat prices are in the C$222-$230 range.

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