Coarse Grain Trade Hits Another Record: Global coarse grain trade for 2007/08 has been raised by over 2 million tons this month to a record 117 million. Improved prospects for the U.S. crop, diminished competition, and tight global supplies have boosted corn trade by nearly 9 million tons since the initial corn export forecast for 2007/08 was released in May 2007. This month U.S. exports are projected up 2 million tons at a record 92 million.

Domestic: U.S average corn prices in September were $166 per ton, up over $10 from August prices while sorghum prices soared to $212 per ton due to strong demand from Europe. Early season U.S. sorghum commitments have again reached an unprecedented level of 4.1 million tons, nearly five times larger than the same time last year. "Unknown" sales of over 2.2 million tons are expected to be largely for shipment to the EU-27.

• United States corn is up 3.0 million tons to 60.0 million, tied for second-highest ever with 1989/90. Corn is attractively priced relative to other feed grains, including feed quality wheat, and export competition remains weak.

• Brazil corn is boosted 500,000 tons to a record 8.5 million owing to large sales to the EU-27. (It is also raised a like amount to 8.0 million tons for 2006/07.)

• China corn is cut in half to 1.5 million tons, the smallest in over a decade, because of reduced production prospects in the face of firm internal feed grain demand. (The previous year is raised by 400,000 tons to 5.2 million based on new trade data.)

• Australia barley is slashed 2.2 million tons to 2.3 million due to a cut in production. Oats are cut 100,000 tons to 75,000 because of limited domestic feed grain supplies.

• Canada barley is up 400,000 tons to 2.4 million, the highest in over a decade, due to reduced competition.

• EU-27 barley is up 500,000 tons to 4.0 million, the highest in 6 years, because of North African demand and diminishing Australian exportable supplies.

• Kazakhstan barley is boosted 400,000 tons to 1.0 million, the highest in over 15 years, because of large exportable supplies and strong regional demand.

• Brazil corn is raised by 450,000 tons to 750,000 (2006/07 trade is boosted 200,000 tons to 1.05 million) because of robust exports that are partly supplied by imports of Paraguayan corn.

• Canada corn is boosted by 300,000 tons to 2.0 million because of its competitiveness against other feed grains, which have attractive international prices.

• EU-27 corn is up 1.5 million tons to a record 9.5 million because of tight supplies of feed grains (imports for 2006/07 are raised the same amount to 7.1 million). Production prospects for all grains are reduced by over 2 million tons this month and imports of corn from Brazil (and U.S. sorghum) are filling the deficit.

• China barley is down 400,000 tons to 1.4 million on a tight international supply picture and production cuts in Australia.

• Saudi Arabia barley is down 200,000 tons to 5.8 million because of overall market tightness.

• EU-27 sorghum soars by 1.5 million tons to a record 3.0 million. Import licenses and outstanding purchases of U.S. sorghum reflect the shortage of feed grains.

• Mexico sorghum is cut by 500,000 tons to 2.5 million due to availability of U.S. corn and relatively high export prices for sorghum.

• Argentina corn is up 700,000 tons to 15.0 million as shipments continue at a record pace.

• Paraguay corn is raised 300,000 tons to 1.8 million based on expanded trade with Brazil. (Brazil imports are raised a like amount to 850,000 tons.)