April 13, 2004

Global Demand For US Corn Remains Strong
 

US corn exports during the first six months of the 2003-2004 marketing year has remained strong as a result of growing global demand, Iowa State University agricultural economist Robert Wisner

Since the beginning of the 2003-2004 marketing year on Sept. 1, 2003, through April 1, U.S. corn exports have climbed 30 percent above last year's sales, Wisner said.

This export sales pace is greater than the U.S. Department of Agriculture's (USDA) projections for a 26 percent increase in U.S. corn exports during the current 2003-2004 marketing year.

"I think there's a good chance that corn exports will continue to run somewhat above last year," Wisner said.

According to Wisner U.S. corn exports have increased during the 2003-2004 marketing year because of an overall decline in world feedgrain production.

Crop problems in Eastern Europe, Russia, Mexico and China are requiring international buyers to bid more aggressively for U.S. corn. South Korea, which typically sources its corn from China, has purchased an additional 44 million bushels of U.S. corn so far during the current marketing year compared to last year. The United States has also seen a sharp 119 percent increase in corn exports to North Africa.

"That, in part, reflects the sharp drop in grain production in the former Soviet Union, the severe drought in the Ukraine, plus some less extreme problems in neighboring former Soviet republics," Wisner said.

U.S. corn export sales will likely remain strong through the summer. However, U.S. corn exports should decline next year as world corn carryover stocks begin to rebuild.