August 25, 2009
Large grain crop gives support to US' exports
The US will continue supplying domestic and international customers with necessary feed grains, according to the US Grains Council (USGC).
Barley, corn and sorghum growers can rest assured that exports are making a critical contribution to the disappearance of grains and their co-products, according to USGC President and CEO Ken Hobbie.
Citing the release of USDA's World Agricultural Supply and Demand Estimates (WASDE), Hobbie said rising demand for ethanol and exports are responsible for this positive outlook.
Both ethanol production and coarse grains exports were projected to heavily contribute to the bottom line of US producers going forward, said Hobbie.
USDA projected US feed grain supplies for 2009-10 higher with corn production more than offsetting a reduction in supplies, as 2008-09 corn exports are raised 50 million bushels.
Corn production for 2009-10 is projected at 12.8 billion bushels, up 471 million as higher forecast yields (153.4 bushels per acre to 159.5 bushels per acre) more than offset a small reduction in harvested acres.
US corn supplies are projected at a record 14.5 billion bushels, up 134 million bushels from the previous record set in the 2007-08 marketing year. Corn exports are projected 150 million bushels higher on reduced foreign production prospects and stronger import demand from Mexico and Taiwan.
Sorghum production was raised slightly from 380 million bushels to 381 million bushels. Barley was raised from 203 million bushels to 207 million bushels.
Sorghum and barley exports are projected to remain steady due to stable demand in Mexico and the Asian markets.
US export market development programmes would also be focused in building additional demand in regions such as the Middle East, Southeast Asia and North Africa, Hobbie said.
