CropGPT - Maize - Week 23

CropGPT - Podcast for Soft Commodities

Global Maize Market Summary for June 09th, 2024

Introduction

• Welcome to the weekly summary of the global maize market for June 09th, 2024.
• For more detailed reporting and analysis, visit the CropGPT website.

Brazil

• Production Variations: Different states show varied outcomes in maize production for 2024.
  • Mato Grosso and Goiás: Early planting and favorable climate conditions lead to potentially record-high yields.
  • Eastern Goiás: Some areas affected by dry May weather conditions.
  • North Paraná and Mato Grosso do Sul: Severe production shortfalls due to low rainfall.
• Nationwide Forecast: Second crop production forecast reduced from 86.6 million tons to 83.6 million tons due to May drought.
• Export and Domestic Demand: Expected to meet both, with up to 40 million tons available for global markets.

Ukraine

• Export Decline: Maize exports dropped to 3.6 million tons in May from 4.05 million tons in April.
• Market Shift: Decrease in exports to China, increase to India, showing a shift towards emerging markets despite overall reduction in volume.

Argentina

• Planting Area Surge: Maize planting area increased to 2 million hectares despite challenges.
• Pest Infestations: Leafhopper pests significantly reduce yields.
• Output Forecast: Expected decrease in output to about 14.5 million tons due to pest impact.

Bangladesh

• High Harvests: Recent high maize harvests.
• Market Manipulations: Feed prices remain high due to alleged manipulations by major players in the poultry industry.
• Call for Regulation: Urgent need for regulatory interventions to stabilize prices and ensure fair trading practices.

Global Outlook

• Market Stability: Total production projected at around 1219.13 million tons for the 2024-2025 crop year, slightly down from the previous year.
• Key Producers: Fluctuating outputs in the United States and Brazil contribute to overall market stability due to adequate global supply levels.

Malawi

• Critical Imports: Essential to address food shortages caused by poor harvests due to adverse weather conditions.
• Donor Support: International organizations emphasize the need for support to facilitate these crucial imports to avoid widespread hunger.

South Africa

• Downward Revision: Maize production for the 2025 marketing year expecting a downward revision.
• Impact on Prices: Potential supply constraints may keep domestic maize prices elevated despite global abundance.