World corn export prices drop on lesser demand

 

 

Corn and sorghum prices dropped due to lesser demand from EU and abundant supplies of feed quality wheat and corn in Russia, Ukraine and Europe, and the strength of the dollar.

 

US corn export prices averaged US$238/ton in August, down US$34 from July. Sorghum prices averaged US$230 per tonne, in August, down US$30 from July.

 

Trade changes in 2008/09

 

Argentina corn is cut 3 million tonnes to 12 million because of reduced production prospects as relative profitability prospects drive acreage to soy.

 

Ukraine corn is cut 500,000 tonnes to 3 million, still a record, because of a smaller crop.

 

Argentina sorghum is down 500,000 tonnes to 800,000 tonnes based on expected lower demand from the EU, due to higher grain production including an abundant supply of feed quality wheat.

 

EU corn is cut by 1 million to 3 million tonnes because of huge domestic supplies of grains.

 

Mexico corn is lowered by 1 million to 9.5 million tonnes in light of forecast record production.

 

South Korea corn is cut again this month by 500,000 tonnes to 7.7 million, the lowest in a decade, as feed quality wheat makes inroads against corn.

 

Israel corn is reduced 300,000 tonnes to 1 million tonnes, the lowest in 6 years.

 

EU sorghum is down 500,000 tonnes to 1 million tonnes based on lower expected demand and abundant supplies of grains.