Cargill food products not affected by low corn quality

Low-quality corn from last year's wet US harvest has not affected Cargill's food products and the quality of corn arriving this spring was not deteriorating compared with last autumn, the head of Cargill North American corn milling said on Monday (March 15).

Cargill's corn milling unit grinds 1.0 million bushels of corn a day into livestock feed and ethanol among others.

The US food industry has been struggling with poor quality corn since harvest. A prolonged, wet autumn hurt the quality of the corn, resulting in lower test weights and high levels of mold and diseased grain kernels.

Livestock feeders have been hit hardest by the poor quality corn with hogs and cattle gaining weight at a slower-than-normal rate, thus increasing the time for producers and feedlots to get them to market.

US processors have been posting big price discounts - 5 to 10 cents a bushel on corn with test weights of 50 lbs (23 kg) or less. The standard "test weight" for one bushel of No. 2 yellow corn is 56 lbs. Similar discounts have been posted for grain with high levels of foreign material or toxins.

Previously, US hog and pork producer Smithfield Foods Inc warned that poor-quality corn will trim profits on hogs this quarter.