Miller Magazine Issue: 119 November 2019

IRAN 99 MILLER / NOVEMBER 2019 from the market, which will also create price support. In addition, due to weather conditions, not only crop yields suffered, but also the quality of Argentine- an wheat. It is also important to note the influence of the political factor: elections in Argentina can signifi- cantly affect export policy up to the introduction of ex- port duties. Inflation there is over 50%, interest rates are upwards of 80%, the country has huge debts to pay to the IMF and the Argentine peso has lost about 85% of its value since Macri has been president. Marci’s representatives are widely expected that the new administration will increase export taxes on ag- ricultural commodities in order to shore up govern- ment revenues. At its peak, commodity export taxes accounted for 11-12% of total government revenues, but that percentage declined when President Macri eliminated or lowered the export taxes. In general, wheat is still in support due to reduc- tion and production and a delay in harvesting, ex- cept for aforementioned Kazakhstan, in Canada, Australia, and Argentina. The second significant fac- tor is the activity on the side of state-owned com- panies: the wave of tenders and the need to buy parties for them against the background of relatively strong currencies of the Black Sea region also cre- ated additional tension. Ukraine remains one of the cheapest countries in the Black Sea region, and this clearly demonstrates the high rate of shipment at ports. As of 05.11,2019, taking into account the line-up, more than 12 MMT of wheat from 19-20 MMT of export potential was sold. The main buyer countries are still Turkey, Indonesia, and China. In corn, the EU is stably active. So far, corn remains under pressure: the harvesting campaign in the Northern Hemisphere is in full swing. Despite the fact that in the USA there is a lag in har- vesting rates, while in Ukraine the yield is still lower than last year for the same period – just 6/37 mt/ha, the market has come to terms with expectations of underproduction in the USA and has moved away from the summer price rally. From the beginning of 2019, Brazil exported more than 30 MMT, and for the period from September 2018 to September 2019 - 40 MMT of corn, which significantly exceeds the sim- ilar indicators of YoY. In case of exports decline Bra- zilians know what to do with the rest of corn supply. There are currently 6 corn-based ethanol facilities in operation in Mato Grosso and 5 more are scheduled to be built over the next two years. According to the