Friday, September 7, 2012

Corn, Soybean Exports Fall Says USDA

A Friday report from the U.S. Department of Agriculture said exports for corn and soybeans dropped for the week ending August 30.

Corn exports plummeted to 235,400 metric tons, down 37 percent from the prior week, and a huge 55 percent from its four-week average. Major buyers were China, Japan, Taiwan, Mexico, Cuba and Jamaica.

Soybean exports plunged to 414,300 metric tons, dropping 23 percent from the prior week, and 16 percent from its four-week average. Major acquisitions came from China, Taiwan, Indonesia, Thailand and Mexico.

Corn exports for the marketing year ending August 30 dropped 16 percent from the previous year. A stronger U.S. dollar and higher corn prices were the impetus behind the lower exports.

Exports for soybeans were lower by 8 percent for the same time period.

The largest importers of U.S. corn were Japan, accounting for 31 percent of the total; Mexico with 25 percent; and China with 13 percent.

As usual, China was the largest importer of U.S. soybeans, acquiring 64 percent of all U.S. soybean exports. Mexico was far behind at 8 percent.

Monday, September 3, 2012

U.S. Corn Outlook Downgraded Again

The outlook for the corn crop in the United States was downwardly revised again by the U.S. Department of Agriculture, as the price of corn traded at a record $8.49 a bushel on Friday, with investors taking profits on Monday, as prices pulled back to $7.89 a bushel on the Chicago Board of Trade for December delivery.

For the year, corn is estimated to come in at 10.8 billion bushels, down 13 percent from the 2011 yield. The average yield per acre is expected to be at 123.4 bushels, the lowest level since 1995.

Next growing season has also drawn concern, as the drought could continue on through the latter part of October, resulting in the depletion of water and further soil damage.

José Graziano da Silva, director general of the FAO, called upon the United States to suspend the foolish (our words) federal ethanol mandate which takes 40 percent of the domestic corn crop and wastes it as fuel.

The price of corn could reach from $9 a bushel, all the way up to $10 a bushel, depending upon the actual amount of corn that is produced, which has yet to actually be determined.