November 27, 2006

US corn exports to reach record high on increasing prices

US agricultural exports could hit a whopping US$77 billion this year, on account of recent hike in corn prices, according to USDA's first estimate of agricultural trade for the fiscal year starting October 1.

A revised value of agricultural commodities hiked US wheat exports for the year 2007 by US$340 million, livestock by US$800 million and soy by US$900 million. Corn however, registered the highest increase compared to August at US$2.1 billion.

Despite the hike in corn prices, according to an USDA official, Brownfield US corn export customers would still buy from the US next year, as they do not have other options.

If corn prices stayed high, other corn exporting countries like Argentina, Brazil and many more would increase their corn acreage to meet global demand, he said.

The USDA official also pointed out global soy availability concerns was a key factor in Brazil and Argentina's original move into the soy export business. He said US corn was moving briskly into export channels with corn exports currently 34 percent ahead of last year¡¯s pace and just about halfway towards USDA's annual projection of 951 million bushels cumulative.