OVERVIEW

World corn production remains a record and is up with higher production in China and the EU more than offsetting lower crop prospects in Argentina. World trade is down slightly on lower Argentine exports and reduced Chinese imports. The U.S. season-average farm price is unchanged this month.

PRICES

Following the release of the November WASDE report, U.S. corn quotes have declined further to become more competitive with other origins. Despite a late harvest and logistical delays, U.S. quotes continue to be pressured by large supplies, a strong U.S. dollar, and continued competition. U.S. quotes are $9/ton below South American and about even with Black Sea. Black Sea quotes are up slightly as political uncertainty and foreign exchange concerns limit farmer selling.

TRADE CHANGES IN 2014/15

Selected Exporters

  • Argentine corn is reduced 500,000 tons to 12.0 million and barley is down 400,000 tons to 1.6 million on smaller crop forecasts.
  • Vietnamese corn is doubled to 400,000 tons on reports of shipments of domestic corn to regional markets.
  • U.S. sorghum is raised 200,000 tons to 5.8 million on continued purchases by China.

  • Selected Importers

  • Chinese corn is cut 500,000 tons to 2.0 million on a larger crop and as policies continue to encourage imports of alternate feed grains. Sorghum is up 400,000 tons to 5.0 million.
  • Saudi barley is lowered 500,000 tons to 7.0 million based on large late-season shipments (2013/14) and sluggish growth in barley feed demand.
  • Japanese sorghum is down 300,000 tons to 1.2 million with imported sorghum less competitive compared with other feedstuffs