In spite of the 2015 bumper corn crop, total exports for the 2015/2016 market year are down 24% from last year, according to an article by the U.S. Grains Council (http://bit.ly/…).
About 1.8 billion bushels (45.7 million metric tons) of the estimated 13.6 bb (345.5 mmt) corn harvest are destined for export. But the strong U.S. dollar is resulting in weaker export demand than normal for the large crop, with corn prices below $4 per bushel.
But even with weaker demand, international buyers are seeking information about the new crop's availability, especially from Japan and Latin America. Also, exports of products such as dried distillers grains with solubles, ethanol, meats, dairy and other feed grains, should help increase the total of grain equivalents exported.
Alan Tiemann, chairman of the Council, said that the strong U.S. dollar is causing U.S. corn to be priced competitively against corn from countries like Brazil and Ukraine. However, U.S. corn has an advantage being from a transparent and reliable system with deliveries made in a timely manner.
The Council will step up and promote programs for ethanol and DDGS exports, building on foreign buyers' positive experiences buying U.S. corn and grains.
Cheryl Anderson can be reached at Cheryl.email@example.com
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