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United States Department of Agriculture
Foreign Agricultural Service
Circular Series
FG 1207
December 2007
Grain:  World Markets and Trade

COARSE GRAINS: WORLD MARKETS AND TRADE

PRICES:

Domestic: U.S corn export prices averaged $185 per ton in November, up over $13 from October prices. Strong demand for U.S. corn and tight exportable supplies of foreign feed grains have kept prices firm. Sorghum prices averaged $190 per ton, down $11 from October prices due to competition from Brazil and slowing demand from EU-27.

TRADE CHANGES IN 2007/2008

Selected Exporters

  • United States corn is boosted 2.0 million tons to a record 62.0 million as a result of strong foreign demand and lack of competition.

  • Argentina corn is cut by 2.0 million tons to 15.0 million because of continuing uncertainties over new-crop export registrations (and a ceiling on old-crop sales).

  • South Africa corn is lowered by 200,000 tons to 800,000 due to a smaller crop forecast and stronger domestic demand.

  • Canada barley is reduced 200,000 tons to 2.2 million. A sharp decline in production was mostly offset by increased corn feeding with a larger corn crop.

  • Russia barley is cut by 600,000 tons to 1.0 million because of export restrictions on a smaller crop.

  • Ukraine barley is cut by 500,000 tons to 2.0 million, the smallest in 7 years, based on export restrictions.

Selected Importers

  • Saudi Arabia corn is raised 600,000 tons to a record 2.0 million and barley is cut 400,000 tons to 5.6 million. Strong domestic demand for feed grains and tight global barley supplies have led to some displacement of barley by corn.

  • Turkey corn is raised by 600,000 tons to 800,000 as a smaller crop and rising prices prompted the government to slash import duties from 130 percent to 35 percent.

  • China barley is cut 100,000 tons to 1.3 million, reflecting diminished use of malting barley as a consequence of tight supplies and high prices.

  • Middle East barley is cut 700,000 tons (Saudi Arabia alone 400,000 tons) based on tight global supplies and high prices. Similarly, Libya is cut 100,000 tons.

TRADE CHANGES IN 2006/2007

Selected Exporters

  • Argentina corn is up 200,000 tons to 15.7 million with final trade data.

  • EU-27 barley is raised by 400,000 tons to 4.4 million based on late-season export licenses.

  • Russia and Ukraine barley are cut a combined 900,000 tons based on new trade data showing a slowdown in late-season exports.

Selected Importers

  • Saudi Arabia corn is up 300,000 tons to 1.6 million with updated trade data.

  • Mexico sorghum is cut by 186,000 tons (to 1.9 million) and EU-27 sorghum is boosted by 300,000 tons to 1.5 million with updated trade data.

  • Middle East and North Africa barley are cut nearly 600,000 tons as new trade data shows reduced imports late in the season.

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