Miller Magazine Issue: 139 July 2021

103 MARKET ANALYSIS MILLER / july 2021 Despite the continuing decline in expec- tations for corn production in Brazil, stock prices tumbled on news of an increase in the forecast for corn production in Argen- tina and rain in the United States. The fall in wheat also supported the positive senti- ment in the EU and the Black Sea region. The absence of China in the market also strengthened the bearish trend. CORN The market reacted sharply to precipitation in the US. Farmers hope that they will partially compensate for the previously lost moisture. The assessment of crop condi- tions has not changed since last week, and at this stage, the amount of moisture received is critical. If this does not happen, then in conjunction with the Brazilian news, the bulls will rise and can drag off the wheat. July is usually the month Brazil starts to ramp up its corn exports, but Brazil's corn exports this July are expected to fall far short of initial expectations. Brazil was expected to export around 33MMT in 2021, with almost all of the ex- ports coming from the safrinha corn crop. Sadly, safrinha corn was planted much later than usual and then suffered BEARS ON THE RAIN Elena Faige Neroba Business Development Manager Maxigrain