U.S. Corn Export Prospects Increase.

Global 2010/11 corn trade is forecast up 1.7 million tons this month to 91.4 million. Reduced availability of barley and low-priced wheat are expected to boost demand for corn. Also China is expected to continue to import corn in 2010/11 as internal prices are staying high enough to make imports attractive. China’s corn imports are increased 0.9 million tons this month to 1.0 million. Corn imports by the EU and South Korea are each raised 0.5 million tons this month, and Israel is increased 0.4 million due to increased prices for low-quality wheat due to production problems in the FSU (former Soviet Union) and Russia’s export ban. The EU is expected to increase wheat exports, and with reduced wheat production, less wheat is expected to be used as feed, boosting the demand for corn imports. Russia’s corn imports are increased 0.2 million tons this month to 0.3 million.

Ukraine’s corn exports are reduced 1.0 million tons this month to 5.0 million due to reduced production. Strong internal demand is expected to limit EU corn exports, trimmed 0.2 million tons to 1.0 million. Brazil’s corn export prospects are increased 0.5 million tons this month to 8.5 million tons as world trade increases. However, the United States is expected to benefit from increased world trade and reduced competition, with 2010/11 corn exports up 2.5 million tons this month to 52.0 million (2.05 billion bushels for the local marketing year). U.S. corn exports for 2009/10 are increased 1.0 million tons this month based on the pace of recent shipments and the large amount of outstanding sales. Argentina’s 2009/10 trade year corn exports are also increased 1.0 million tons this month due to the strong pace of shipments.

World barley trade projected for 2010/11 is reduced 0.6 million tons to 15.9 million due to reduced global production, Russia’s export ban, and increased prices. Ukraine’s exports are cut 1.2 million tons to 4.0 million; Russia’s exports are reduced 0.6 million tons to 0.4 million; with smaller reductions for Kazakhstan and India. The EU, with large stocks, is expected to have strong exports, up 1.0 million tons this month to 4.6 million. Australia’s barley exports are increased 0.4 million tons this month to 4.0 million.

U.S. sorghum exports for 2010/11 are increased 0.2 million tons this month to 3.8 million. Increased U.S. production prospects and strong demand from Mexico are expected to boost trade.

Source : cattlenetwork.com