June 16, 2008

US corn exports to remain high despite ethanol competition

The US corn export projections via Gulf ports are expected to remain high, amid a subsidised push to use corn in the production of ethanol.

Ken Eriksen, Informa Economics' senior vice-president for transportation services, said that despite more substantial volumes of corn used to produce biofuels, this is not yet impacting export levels.

Eriksen pointed out that exports through elevators in most port ranges are benefiting from the rise in shipments.

Southern states in the US rapidly adopted corn plantings and this is providing significant volumes to the Gulf export channels via the lower Mississippi River, he added.

US grain and oilseed exports are forecast to set a new record of more than five billion bushels in the 2007/08 marketing year as weak US dollar and strong global prices encourage US farmers to supply international markets.

Joel Chaisson, chief executive director of the port of South Louisiana, said that the port's position as the leading US export gateway for grains would not be threatened by rising domestic demand for biofuels.

In 2007, South Louisiana, the largest port in the western hemisphere by volume after handling some 258 million tonnes in 2007, saw corn throughput remain steady at 53.7 million tonnes, wheat handling increase 10 percent on-year to 9.3 million tonnes and soy throughput fall marginally to 28.3 million tonnes.