December 6, 2007
Optimism soars for US agricultural exports as world grain supplies tighten
Rising global grain demand amid tighter supplies is drawing US agricultural exports to new highs.
The USDA's Foreign Agricultural Service (FAS) raised its forecasts for fiscal year 2008 exports, predicting sales may exceed the previous record set in the last fiscal year that ended Sept. 30, 2007.
USDA is now projecting the value of US agricultural exports for fiscal year 2008 at US$91 billion, US$9.1 billion more than fiscal year 2007's.
The figure was also US$7.5 billion more than USDA's August estimate, reflecting strong optimism.
Ken Hobbie, US Grains Council president and CEO, said the projections were higher due to strong demand for US feed grains on top of tight supplies.
Hobbie, was in Europe with leaders from the National Sorghum Producers accessing market opportunities.
Drought in Europe has reduced the grain harvest there and caused sharp increases in prices, forcing feed producers to source cheaper sorghum from the US.
Coarse grains exports are now expected to reach 68 million tonnes amounting to US$11.7 billion, up from 60 million tonnes totalling US$10.3 billion predicted in August
This was also a 20-percent increase of US$1.9 billion and a 17-percent of 8.9 million tonnes from 2007 totals.
Corn made up the bulk of the estimate with 60 million tonnes projected, nearly 6 million tonnes more than 2007 numbers.
Dale Artho, USGC chairman and Texas sorghum producer said the Council is working to further escalate demand for US feed grains by working with international importers.
Strong demand for sorghum in the EU could mean more US corn to Mexico, where most of the US sorghum usually goes, he added.
Figures at a glance
Fiscal 2008 August estimates Fiscal 2007
(current projections) for fiscal 2008
US agricultural exports (US$ billion) 91 83.5 81.9
US grain exports (million tonnes) 68 60 59.1
US grain exports (US$ billion) 11.7 10.3 9.8
