– Increased corn
exports are continuing to draw down stocks, according to the
USDA’s World
Agricultural Supply and Demand Estimates (WASDE) issued yesterday.
For the third
consecutive
month, the USDA has lowered its assessment of U.S. corn stocks. The
April estimate of
58.45 million
metric tons (2.3 billion bushels) of corn stocks is more than 3 million
tons (124.8 million
bushels) below
January’s estimate of 61.62 million tons (2.4 billion bushels).
“The United
States is expected to capture an increasing share of the growing world
demand for coarse
grains,” notes
Ken Hobbie, U.S. Grains Council president and CEO. “Strong export demand
in Asia,
combined with
decreased exports by both Argentina and China in recent months, is good
news for U.S.
corn producers.”
The Council has
worked continuously to build export markets for U.S. grains around the
world for more
than 45 years.
From assisting feed mills in Vietnam develop nutritionally balanced
rations to conducting
feeding trials
in Mexico to providing technical support for the first beef feed lot in
Morocco, Council
staff and
programs are driving demand for U.S. feed grains and grain products.
Moreover, Council programs
to enhance
swine, dairy and cattle production in China have contributed to a rise
in grain demand
there, leading
it to temporarily halt its corn exports. With China out of the export
market, Korea and
countries in
Southeast Asia are looking to the United States for needed feed grain
supplies.
The growth in
exports has boosted the low range of price projections for corn to $1.95
per bushel this
month, compared
to $1.85/bu in February and March. This 10 cent/bu increase means an
additional estimated
$1.1 billion
will flow into the U.S. feed grains economy this year. The high end of
the range remained
steady at $2.05/bu.
In addition,
U.S. sorghum is enjoying increased demand, particularly in Mexico. Two
factors are contributing
to sorghum’s
popularity there, according to Ricardo Celma, USGC director for Mexico
and
Central America.
Mexico’s regular corn import quota has already been used by most feed
grain importing
companies and
sorghum is currently priced more favorably than either processed or
whole corn. Rising
exports have
decreased sorghum stock estimates by 15 million bushels. The price range
for sorghum
has increased 5
cents on the low end, putting price estimates at $1.70-$1.80/bu.
To read the full
report, visit the USDA web site at