We look at Brazil/Argentine corn values back in REALS and Peso but looking at corn in ruble you can see why corn plantings will continue to increase in Russia, when we talk about Black Sea corn the discussion has been centered on the Ukraine but that now looks to change. Private analysts have planted areas increasing this year 7% as producers see the crop as less politically sensitive than wheat and has demand in the growing domestic livestock sector. The switch in acres looks to affect both wheat and barley plantings. Does have some interesting long term thoughts on wheat acres also and goes back to the discussions of wheat losing to alternative crops in these lower price environments (not for Black Sea producers per currency) and potential government trade policy issues. Exports are expected to increase 7% this year after increasing 31% last year and you can see by the charts below how this growth has started to follow the pattern for the Ukraine. Shows the ongoing currency issues vs the USD for US grain exports and shift in world production.
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