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prospects for corn exports increase

Cal

Well-known member
http://www.agweb.com/get_article.aspx?src=gennews&pageid=138725

According to USDA's Feed Outlook Report, prospects for world corn trade in 2007/08 increased 2.0 million tons this month to a record 92.4 million. In the report, USDA raised the U.S. corn export forecast because of reduced global competition and a boost in the sales pace.

U.S. 2007/08 (October-September) corn exports are projected up 3.0 million tons this month to 60.0 million tons, the highest in 18 years and the third highest on record, says USDA. U.S. local marketing year (September-August) exports increased 100 million bushels to 2.35 billion bushels. "Increased world trade and reduced competition from China are enhancing U.S. export prospects," says USDA. "Moreover, the early season pace of corn sales has been very robust. According to U.S. Export Sales, as of October 4, 2007, outstanding sales of corn reached 18.5 million tons, up from 10.9 million a year earlier."

Projected imports by the EU-27 increased 1.5 million tons to 9.5 million based on the strong pace of purchases, with large import licenses confirming the trade, says USDA. Brazil, with record corn exports (mostly to the EU-27), is boosting imports from neighboring Paraguay, with projected imports up 0.45 million tons to 0.75 million. Canada is expected to feed less wheat and barley and export more as the price of imported corn is more attractive for feeding. Canada’s corn imports are projected up 0.3 million tons this month to 2.0 million, says USDA.


Meanwhile, China’s corn exports projected for 2007/08 were cut in half this month to 1.5 million tons due to tight domestic supplies caused by reduced production prospects and continued growth in meat production, says USDA. "The Government of China has moved to limit the growth in industrial use of corn for the production of ethanol and is unlikely to subsidize large exports," they add.

Brazil’s corn exports in 2007/08 (October-September) are projected to reach a record 8.5 million tons, up 0.5 million this month because of strong purchases of Brazilian corn by the EU-27, which prefers corn from Brazil because of restrictions on GMO imports, says USDA.


The U.S. sorghum export projection for 2007/08 increased 1.0 million tons to 6.6 million, the highest in 15 years due to strong purchases by the EU-27, which seeks non-GMO grain imports, says USDA. EU-27 sorghum imports projected for 2007/08 increased 1.5 million tons this month to a record 3.0 million. "However, the strong buying by the EU-27 is expected to increase U.S. sorghum export prices enough to limit sales to Mexico, which were trimmed 0.5 million tons this month to 2.5 million," they add.

Significant adjustments to projected 2007/08 world barley trade were caused by reduced exports prospects for drought-stricken Australia, says USDA. "Exports for Australia are down 2.2 million tons this month to 2.3 million. Increased exports for the EU-27, Canada, and Kazakhstan are partly offsetting, but global barley imports were also reduced."
 
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