The mammoth U.S. grain harvest and reduced competition from South America will set the stage for a rapid increase in exports over the next six months, the chief executive of ADM told analysts. Agrimoney quoted ADM leader Juan Luciano as saying, “Demand continues to be strong and the United States is competitive now for the future months.”
Exchange rates for the U.S. dollar are stabilizing, said ADM chief financial officer Ray Young, making U.S. corn, soybeans and wheat more affordable for buyers. Meanwhile, Brazil and Argentina suffered weather losses to their crops and will have smaller supplies available for export. Argentina reduced its export tariffs earlier this year.
“In fact, a lot of the surplus corn and wheat that was in Argentina actually moved to the world markets already, and hence you don’t have the Argentine overhang and that’s going to be favorable in terms of how U.S. exports are going to look like,” said Young, according to Agrimoney.