The USDA has raised its forecasts for U.S. corn and sorghum exports and predicts that U.S. corn exports could reach their highest levels in nearly two decades. Bouyed by corn and sorghum sales, the value of U.S. agricultural exports rose $1 billion compared to last year.
Estimated exports of U.S. corn were increased by 100 million bushels and U.S. sorghum by 40 million bushels. This is particularly good news for U.S. grain producers as corn demand for ethanol was lowered by 100 million bushels for the second consecutive month.
“The Council is working around the world to monitor the local markets in more than 50 countries and building relationships with grain importers and end users,” says Ken Hobbie, U.S. Grains Council president and CEO. According to the World Agricultural Supply and Demand Estimates issued on Oct. 12, U.S. corn production is expected to reach 13.3 billion bushels and 2007/08 exports are projected to be 2.35 billion bushels.
“Due in part to the Council’s efforts to educate buyers, U.S. grains and grain products are valued across the globe for their high quality and reliable supply,” says Dale Artho, USGC chairman and a Texas sorghum producer. “Europe’s grain shortage is altering international grain markets as their demand for U.S. sorghum will most likely result in some of our grain typically exported to Mexico going instead to European buyers. This will lead to additional export opportunities for U.S. corn to Mexico.”
Artho hopes the tight supply and demand situation will increase calls in the European Union to approve more biotech events and reopen the market to U.S. corn and corn products as a means to control rising food costs on the continent.
Source: U.S. Grains Council