July 17, 2006

US corn exports increase due to lack of competitors

US corn exports forecast for the 2005/06 September-August marketing year were up 16 percent compared with the previous year.

The October-September trade year forecast was increased 1.0 million tonnes to 54.5 million.

The increase was attributed to strong sales and lack of competition from Argentina and China during the last months of 2005/06.

Corn exports from September 2005 through May 2006 reached 1.5 billion bushels, up 11 percent compared with the previous year.

Increased US export prospects supported a 0.7-million-tonne increase to 77.3 million in world corn trade for 2005/06.

Brazil has also been exporting more corn than expected, especially to Iran despite higher prices, so forecast corn exports by Brazil were increased 0.4 million tonnes to 1.4 million.

However, Argentina's corn exports werr expected to be lower by 500,000 tonnes as sales had been slow.