USDA: Second-Largest Corn Crop Projected, Exports Critical
Posted: Monday, August 24, 2009 8:01 pm
WASHINGTON, D.C., August 12, 2009 – The United States is more than able to continue supplying domestic and international customers with necessary feed grains, according to the U.S Grains Council, the leading organization for developing export markets for barley, corn, sorghum and their co-products. At the same time, barley, corn and sorghum growers can rest assured that exports are making a critical contribution to the disappearance of grains and their co-products, according to USGC President and CEO Ken Hobbie. Citing today’s release of USDA’s World Agricultural Supply and Demand Estimates (WASDE), Hobbie said rising demand for ethanol and exports are responsible for this positive outlook.
“This report emphasizes again how important building and maintaining both domestic and international markets are to the overall profitability of U.S. farmers,” said Hobbie. “Both ethanol production and coarse grains exports are projected to heavily contribute to the bottom line of U.S. producers going forward.”
USDA projects U.S. feed grains supplies for 2009/2010 higher with corn production more than offsetting a reduction in supplies as 2008/2009 corn exports are raised 50 million bushels. Corn production for 2009/2010 is projected at 12.8 billion bushels, up 471 million as higher forecast yields (153.4 bushels per acre to 159.5 bushels per acre) more than offset a small reduction in harvested acres. The report stated U.S. corn supplies are projected at a record 14.5 billion bushels, up 134 million bushels from the previous record set in the 2007/2008 marketing year. Corn exports are projected 150 million bushels higher “reflecting reduced foreign production prospects and stronger expected import demand from Mexico and Taiwan.” Sorghum production was raised slightly from 380 million bushels to 381 million bushels. Barley was raised from 203 million bushels to 207 million bushels. Sorghum and barley exports are projected to remain steady due to stable demand in Mexico and the Asian markets.
“We hope the Council’s efforts will increase corn exports far beyond the 150 million bushels projected. Strong demand from Mexico and Taiwan is welcomed,” said Hobbie. “Our export market development programs will also be focused in building additional demand in regions such as the Middle East, Southeast Asia and North Africa. We are also soon to establish a regional office in Latin America to focus increased attention on growing demand and capturing greater U.S. market share for U.S. coarse grains in Panama, Costa Rica, Colombia, Peru, Guatemala and other countries in the region.”