WORLD MARKETS AND TRADE :
COMMENTARY AND CURRENT DATA
COARSE GRAINS: WORLD MARKETS AND TRADE
version for charts
Taiwan Seeks Chinese Corn: Recently, Taiwan's livestock
industry has shown interest in purchasing up to 500,000 tons of Chinese corn due
to high U.S. prices. However, trade sources expect perhaps 50,000 tons will be
purchased and delivered by the end of February, when the current Taiwanese
government authority expires. Strong domestic demand is keeping Chinese corn out
of the export market, and there is little history to suggest large sales to
Taiwan that would significantly impact U.S. dominance in that key corn market.
Taiwan is expected to import 4.5 million tons of corn this year, nearly all from
the United States.
Domestic: December export bids for U.S. #2 yellow corn
dropped for the first time in 6 months and averaged $160. Prices remain high
with strong domestic and foreign demand, and slack competition from China and
TRADE CHANGES IN 2006/2007
- United States corn is up 1.0 million tons to 56.5 million. Huge
outstanding sales, a rapid shipment pace to date, and continued limited
competition have combined to push exports to a 12-year high despite soaring
- Brazil corn is raised 1.0 million this month to 4.5 million because
of ample exportable supplies and strong shipments in recent months.
- Ukraine corn is cut in half to 1.0 million tons and Ukraine
barley is lowered 300,000 tons to 4.0 million because of export quotas
that are restricting trade.
- Argentina sorghum is up 350,000 tons to 600,000 based on early
export registrations, increased exportable supplies (largest crop in 7
years), and strong shipments to Japan.
- U.S. sorghum is down 200,000 tons to 4.2 million based on the slow
pace of sales, especially to Mexico. This is the lowest level of exports in
over 20 years.
- EU-25 corn is raised 500,000 tons again this month to 4.0 million
based on the pace of import licenses. This is more than double from last
year and the accession of Bulgaria and Romania will likely increase corn
trade to the EU-25.
is lowered 200,000 tons to 2.0 million as a result of
tightness in key suppliers such as Australia and Canada as well as a large
- Mexico corn is up 500,000 tons to 6.8 million because of rapid
purchases and shipments.
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Friday, January 12, 2007