Thanks to continued strong demand from overseas buyers, U.S. corn exports this trade year could be the second highest ever, the Foreign Agricultural Service said on Thursday. “This month, exports are forecast at 61.0 million tonnes. … The previous record was 61.8 million, set in 1979/80.”
“Exports by key competitors, mainly Brazil, Argentina, and to a lesser extent Ukraine, have been slower than anticipated,” said the USDA agency in its monthly Grain: World Markets and Trade report. Drought reduced Argentina’s corn supply, and the high price of corn from Ukraine has deterred sales there. Soybeans have shouldered corn aside at Brazilian ports, where there’s a rush to capitalize on soybean sales to China.
Corn exports during March, April, and May were far above average, and initial data indicates strong sales in June as well. In addition, a record volume of corn, already under contract, remained to be shipped at the end of June, indicating large shipments for the rest of the 2018/19 trade year, which ends on Sept. 30. “The strength in exports, however, is currently forecast to diminish year-over-year in 2018/19, as both importing and exporting countries adjust to trade dynamics,” said the FAS.