USDA Projects Higher 2013/14 Corn Exports, Leave Carryout Lower
Global corn trade in 2013/14 (October-September) is projected up 3.1 million tons this month to a record 112.5 million. The European Union (EU) is increasing exports of wheat and importing corn to replace wheat in feed rations.
U.S. 2013/14 corn exports are forecast 150 million bushels higher to 1,600 million this month as the export pace picks up in response to attractive corn prices and strong global demand. Ending stocks are projected 150 million bushels lower to 1,481 million as a result. The projected midpoint of the corn price range is raised 10 cents to $4.50 per bushel. The midpoints of the projected farm price ranges for sorghum and barley are raised 5 cents per bushel to $4.25 and $6.05 per bushel, respectively. The midpoint of the oats price range is raised 10 cents per bushel to $3.70 per bushel.
The increase in U.S. corn exports is supported by record-high world corn trade, a lull in competitors’ shipments, and strong U.S. sales. The pace of U.S. corn shipments during the first months of 2013/14 has been much stronger than the previous drought-devastated year, but not particularly strong when compared with other years. However, as of January 30, 2014, outstanding U.S. export sales of corn to the world reached 18.6 million tons, the second largest level in recent decades. Exchange rate and macroeconomic uncertainty, as well as production problems, are slowing the pace of Argentina’s corn exports. Global corn trade in 2013/14 (October-September) is projected up 3.1 million tons this month to a record 112.5 million. The European Union (EU) is increasing exports of wheat and importing corn to replace wheat in feed rations. EU corn imports are raised 1.5 million tons to 10.5 million. The pace of corn purchases supports increases of 0.5 million tons each for Egypt, South Korea, and Mexico.
Read more: Download full USDA ERS Feed Outlook Report published February 12, 2014 from the link below (PDF).