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United States Department of Agriculture
Foreign Agricultural Service
Circular Series
FG 0108
January 2008
Grain:  World Markets and Trade

COARSE GRAINS: WORLD MARKETS AND TRADE

PRICES:

Domestic: U.S corn export prices averaged $201 per ton in December, up over $16 from November prices. Strong demand for U.S. corn and tight exportable supplies of foreign feed grains have kept prices firm. Sorghum prices averaged $205 per ton, up $15 from November prices, due to continued strong demand, sales, and shipments to the EU-27.

TRADE CHANGES IN 2007/2008

Selected Exporters

  • Brazil corn is boosted 500,000 tons to a record 9.0 million because of extraordinary demand from the EU-27 for feed grains.

  • Canada corn is doubled to 400,000 tons, the highest in 8 years, because of a record crop, slowing domestic use, and strong foreign demand. (Imports are cut by 300,000 tons to 2.0 million.)

  • China corn is slashed by 500,000 tons to 1.0 million, the lowest in 12 years. Recent government actions to curb food price inflation--cancellation of VAT rebates for exports and initiation of an export tax--together with the lack of export quotas for 2008 will severely limit additional trade this year.

  • Paraguay corn is raised by 400,000 tons to 1.6 million, the second highest ever, based on strong early-season exports to Brazil and the region. (Similarly, Brazil corn imports are boosted by 200,000 tons to 950,000.)

  • United States sorghum is up 200,000 tons to 7.2 million, the highest in 16 years, on the EU-27 demand for GMO-free feed and the pace of commitments.

Selected Importers

  • EU-27 corn is raised 500,000 tons to 10.0 million, the highest in almost a quarter-century, as shipments continue to be strong in the face of a major feed grain deficit.

  • Israel barley is cut 100,000 tons to 250,000 after 2 years of diminished imports and evidence of increased use of corn in feed rations.

  • EU-27 sorghum is up 200,000 tons to a record 3.9 million based on the pace of sales and shipments from the United States.

TRADE CHANGES IN 2006/2007

Selected Exporters

  • Mexico corn is raised to 200,000 tons (from zero) with updated trade data.

Selected Importers

  • Updated trade data boosts two countries to record imports: Iran corn at 3.2 million tons (up 200,000 tons) and Peru corn at 1.5 million tons (up 228,000 tons).

  • Jordan barley is bolstered 204,000 tons to 804,000 and Tunisia barley is raised 166,000 tons to a record 866,000 showing that high barley prices did not dampen demand.

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