May 16, 2005

 

US corn and soybeans exports rise for the year 2005

 

 

Drought and other factors in competing nations would see US exports of soybeans, rice, cotton and corn rising this year, some to record levels, said the Agriculture Department Thursday.

 

Keith Collins, the department's chief economist, said a decline in global production is spurring United States exports.

 

Collins added that the US is seeing pretty good growth in demand around the world, and it has large supplies there.

 

The exception is wheat, which many countries have in large supply. Exports of US wheat are projected to drop to 950 million bushels, down 100 million from earlier estimates in the face of competition from Europe, Ukraine and Russia.

 

US wheat farmers are expected to grow slightly more wheat this year, according to department estimates.

 

But farmers are expected to produce less of other major crops. Collins said that's natural after last year's record crops.

 

"We had record corn, soybean, cotton and rice yields last year, so this is more of a return to trend," Collins said.

 

Soybean exports, meanwhile, are projected to reach an estimated 1.1 billion bushels, the highest ever, as Brazil, the major US competitor, struggles with drought.

 

Soybean production will drop 8 percent to 2.9 billion bushels, the department said. Producers should see prices averaging between $4.70 and $5.70 a bushel, compared with $5.65 last year.

 

Corn exports will rise because of less competition from China, Argentina and Brazil, the department said, and US ethanol producers will buy more corn.

 

Yet prices are forecast at $1.55 to $1.95 a bushel, compared with $2 to $2.10 last year. Domestic use is expected to drop because more non-grain ingredients are going into livestock feed.