November 5, 2007

EU corn, sorghum imports continue to rise up sharply on-year

European Union licenses to import corn and sorghum were up again on the week, adding to this season's already large totals.

Corn import licenses totalled 5.25 million tonnes, as of October 30, or 18 weeks into the 2007/08 marketing year. This is up about 457,000 tonnes on the week and is more than 3.5 times the same time last season when they tallied 1.49 million tonnes.

Sorghum import certificates reached 1.66 million tonnes as of October 30, a rise of about 152,000 tonnes on the week. This is up dramatically from a year earlier when sorghum import licenses were just 182,000 tonnes and two years ago when licenses tallied just 1,000 tonnes.

The jump in imports comes after poor growing weather slashed the EU cereal crop for the second season in a row and as EU intervention stocks are now nearly used up. A rise to record high wheat prices also prompted feed compounders to seek alternative feedstock sources.

Most of the corn is said to be from Brazil and the sorghum from the US

But EU corn prices have been under pressure recently as fresh harvest supplies make their way to market.

EU wheat exports were nearly unchanged on the week at 2.385 million tonnes as of October 30, which is down from 4.838 million tonnes for the same time last year.