Turkish Phytosanitary and Customs Authorities have rejected Indian Origin Durum Wheat of 55,000 mt sold to a private buyer in Turkey. The vessel is currently at Iskenderun Port, but believed to be leaving the port soon.
Early arrival of monsoon rains in India has brightened its crop production outlook.
There is a rumor that cash soybeans traded $18.50 on Friday, an all-time record high in central Illinois. No one verifies. The seller does not want his neighbors to know and the buyer is too embarrassed.
Brazil Ethanol Update:
Ethanol Journey that began in 1973
After the Arab Oil Embargo in October 1973, crude oil prices went from $3 to $40 a barrel overnight. No country suffered as much as Brazil. Not only was the country rapidly expanding its agriculture production and processing, Brazil did not have a single oil well. The country vowed to an ever expanding ethanol production program to build engines to burn 100% Brazilian ethanol within 30 years.
Ethanol from sugar costs a third as much as ethanol from corn. Brazil was in 1973 and still is the world’s largest exporter of sugar, so reduced sugar exports to increase ethanol production was the order of the day.
When crude oil traded down to $6 a barrel in 1986, Brazil suspended indefinitely their stance on 100% ethanol fuel. Sugar was much more valuable than crude oil in 1986.
Until Asian Leaf Rust (ALR) hit Brazil’s soybeans in 2001, Brazil was a net importer of corn and, therefore, using corn to produce ethanol was out of the question. As a control measure of ALR, Brazil banned second crop beans to eliminate host plants for ALR to reduce its survivability from one crop year to the next. By 2004, corn had become the primary second crop after first crop soybeans. As corn production expanded very quickly, corn for export became big business for Brazil and its farmers. Even the beginning of corn ethanol production in Brazil in 2017 did not keep Brazil from becoming the world’s number 2 corn exporter.