September 19, 2006

 

US corn exports forecast to exceed 2 billion bushels

 

 

The US corn industry would be able to produce more than 11 billion bushels (279.4 million tons) of corn in 2006/07, and out of that amount 2.25 billion bushels (57.15 million tonnes) would be exported, according to the World Agricultural Supply and Demand Estimates (WASDE) issued by the USDA last week.

 

If these predictions are correct, this would be the second largest US crop.

 

The numbers are good news for international buyers of US corn, said Erick Erickson, USGC special assistant for planning, evaluation and projects.

 

The corn supply issue has been a source of concern for current and potential importers in Japan and China as the US ramped up its ethanol production, which is heavily dependant on corn, said Erickson.

 

The official production estimates from USDA have laid these fears to rest and the USGC has reassured importers that the US corn industry is committed to remaining a reliable supplier.

 

Both sorghum and barley export expectations were unchanged at 165 million bushels (4.2 million tonnes) and 20 million bushels (435,400 tonnes) respectively.

 

China welcomes US corn and in fact it is the preferred choice when available, Zhang Xiaorong, purchase manager with Guangzhou New Hope Co recently said during a mission visit to China by a US corn mission consisting of members from the US corn industry.

 

Guangzhou New Hope is China's largest domestically owned feed mill and first private company to import US corn.

 

Zhang said the concern is not on price but on quality, adding that he was assured about the quality of US corn through visits to the US.

 

Knowledge about its quality and its high test weight has made the company more willing to pay more for the product, he added.