March 7, 2013

The US is losing its corn export market share to Brazil, Argentina and Ukraine as the three biggest corn importing nations of Japan, Mexico and Korea seek for lower prices.

The drought in the US has sent grain prices to record highs. According to the USDA, South American countries are expected to increase their output by 5.9% this year.

According to Lee Tae Woong, general manager at South Korea's feed miller firm, Nonghyup Feed, South American corn is US$30 less costly than US corn. They are also producing more, whereas availability in the US is tight.

US corn supply accounted for 35% of Korean imports in 2012, the lowest since 2005 and down from 78% in 2011 and 85% in 2010, customs data show.

In Japan, US corn imports fell to 11.1 million tonnes in 2012, representing 74% of total purchases, data from Japan's agriculture ministry show. Japan's total corn imports dropped to 14.9 million tonnes last year, the lowest since 1986, according to the data.