COARSE GRAINS: WORLD MARKETS AND TRADE
U.S. Corn Exports Continue to Tumble: U.S. corn export sales are lagging well behind last year, due mostly to strong competition from Argentina, especially in markets such as Saudi Arabia, Indonesia, and Malaysia. In the first quarter of the 2004/05-trade year, Argentina's sales to Saudi Arabia surged over 70 percent, while sales to Indonesia and Malaysia more than doubled. Any hope for a U.S. recovery will likely be tempered by Argentina's largest crop in 5 years, which is expected to reach markets starting in March and April. Competition in Middle Eastern and Southeast Asian markets will remain fierce throughout the rest of 2004/05. In light of these considerations, the U.S. export forecast is slashed by 1.5 million tons to 49.5 million.
Domestic: December export bids for #2 yellow corn averaged about $96/MT, up $2 from last month (See PDF version for chart).
December export bids for #2 yellow sorghum (Texas Gulf) averaged over $91/MT, up over $1 from last month but nearly $27 below year-ago prices. Sorghum carried a $5-per-ton discount to corn in December, up slightly from the previous month.
TRADE CHANGES IN 2004/2005
TRADE CHANGES IN 2003/2004
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