U.S. corn dominance may be waning due to drought

decrease font size  Resize text   increase font size       Printer-friendly version of this article Printer-friendly version of this article

Asian countries may no longer look toward the United States for its corn needs after a severe drought this past summer shriveled crops and sent corn prices soaring. As a result, the U.S. may be losing its dominance as a corn export powerhouse, according to foreign grain buyers at the Export Exchange industry conference this week in Minneapolis.

Importers from Asia, including South Korea, Taiwan and Japan have been buying feed from South America and producers in the Black Sea region instead of the United States, Reuters reported. It is also reported that China has not purchased any U.S. corn since mid-summer. Projections are that China will not buy any U.S. corn until the spring of 2013 and only if prices are closer to the $6 level, according to the grain buyers at the conference.

Argentina supplied China with corn for the first time this year as a result of higher priced corn from the United States.

“The floor of competition for U.S. grain production rises every day. This year is a wake-up year for us with the short crop we had,” said Thomas Sleight, president and CEO of the U.S. Grains Council, which hosted the conference.

“I would hope that the U.S. farmer comes back and comes back strong, flexing their competitive muscle. But certainly, the doors have been opened for the other suppliers,” he told Reuters.

The industry is concerned over the shift to South American exporters. Losing Asia’s market share could be a big concern. Brazil and Argentina appear to be making up for the lack of corn supply in the U.S. with bumper crops of their own.

Although traders cite U.S. corn as good quality, they simply cannot afford to make the purchase.


Buyers Guide

Doyle Equipment Manufacturing Co.
Doyle Equipment Manufacturing prides themselves as being “The King of the Rotary’s” with their Direct Drive Rotary Blend Systems. With numerous setup possibilities and sizes, ranging from a  more...
A.J. Sackett Sons & Company
Sackett Blend Towers feature the H.I.M, High Intensity Mixer, the next generation of blending and coating technology which supports Precision Fertilizer Blending®. Its unique design allows  more...
R&R Manufacturing Inc.
The R&R Minuteman Blend System is the original proven performer. Fast, precise blending with a compact foot print. Significantly lower horsepower requirement. Low inload height with large  more...
Junge Control Inc.
Junge Control Inc. creates state-of-the-art product blending and measuring solutions that allow you to totally maximize operating efficiency with amazing accuracy and repeatability, superior  more...
Yargus Manufacturing
The flagship blending system for the Layco product line is the fully automated Layco DW System™. The advanced technology of the Layco DW (Declining Weight) system results in a blending  more...
Yargus Manufacturing
The LAYCOTE™ Automated Coating System provides a new level of coating accuracy for a stand-alone coating system or for coating (impregnating) in an automated blending system. The unique  more...
John Deere
The DN345 Drawn Dry Spreader can carry more than 12 tons of fertilizer and 17.5 tons of lime. Designed to operate at field speeds up to 20 MPH with full loads and the G4 spreader uniformly  more...
Force Unlimited
The Pro-Force is a multi-purpose spreader with a wider apron and steeper sides. Our Pro-Force has the most aggressive 30” spinner on the market, and is capable of spreading higher rates of  more...
BBI Spreaders
MagnaSpread 2 & MagnaSpread 3 — With BBI’s patented multi-bin technology, these spreaders operate multiple hoppers guided by independent, variable-rate technology. These models are built on  more...


Comments (0) Leave a comment 

Name
e-Mail (required)
Location

Comment:

characters left


LPV Seed Treater

The LPV Seed Treater has set a new standard boasting three configurable weighing methods for any-sized operation, a standard 42” ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form