Export Commodity Mix Differs Among Top Three U.S. Markets

Export Commodity Mix Differs Among Top Three U.S. Markets

The U.S. Department of Agriculture reports that in terms of value for U.S. agriculture exports, both Canada and Mexico are close to China as top markets, all markets in which the U.S. Grains Council is heavily active in. The purchasing of each individual market is in the neighborhood of $18 billion annually. This chart illustrates the different mix of commodity purchases for each of these key markets. As the chart illustrates, oilseeds make up more than 50 percent of China's agriculture imports from the United States. About 45 percent of U.S.

U.S. Coarse Grains Planting Well Ahead of Average Pace

U.S. Coarse Grains Planting

The USDA reports that as of May 6, 2012 corn planting in the 18 states accounting for 92 percent of 2011 corn acreage was at 71 percent, compared to the five year average of 47 percent.

Sorghum planting in the 11 states that make up 98 percent of the 2011 acreage was at 29 percent, compared to the five year average of 25 percent.

For barley, the five states that accounted for 71 percent of 2011 U.S. barley area had 83 percent planted, compared to the five year average of 53 percent.

2011 U.S. Corn Crop Will Hold Up in Export Transit

2011 U.S. Corn Crop Will Hold Up in Export Transit

The U.S. Grains Council arranged for samples from the 2011 corn crop to be tested at harvest and again at export. The harvest report was released in February 2012. The Export Cargo report will be released next week. As a preview of the Export Cargo report, this chart shows the test results on export cargo samples for Broken Corn and Foreign Material (BCFM).

Morocco's Saw Tooth Production and Drought Creates US Opportunities

Morocco's coarse grains supply and demand

This chart illustrates the dynamics of Morocco's coarse grains supply and demand. The grey area in the chart shows production, which in Morocco is mostly barley. The saw-tooth nature of the production area reflects the weather dependency of Morocco's crop production. The total use and feed use lines show strong growth over time. But that growth can be derailed by a series of bad harvests, as was the case in 2007 and 2008.

U.S. DDGS Exports

U.S. DDGS exports

The Census Bureau reported U.S. DDGS exports at 612,638 metric tons in February, which is a 1 percent increase over January exports. China (blue line) accounted for 25 percent, or almost 150,000 metric tons, of total shipments.As the largest swine producer and consumer, China will increasingly become a more consistent importer of feed grains.

High Commodity Prices Encourage Purchases of Alternative Feed Ingredients

South Korea is one of the best examples of how high commodity prices encourage the search for alternative feed ingredients.

The columns in blue show total Korean corn feed use (all imported) over the past decade, rising to 7 million metric tons (278.6 million bushels) in 2007/2008 and declining to 6 million tons (236.2 million bushels) in 2011/2012. But that decline in corn use is more than compensated for by increases in wheat feeding and distiller's dried grains with solubles (DDGS) imports.

Chart of the Week: Coarse Grain Import Demand Growth

Coarse Grain Import Demand Growth

The USDA 'Baseline to 2021' includes this projection for coarse grain import demand growth over the coming decade. Coarse grains here are mainly corn, sorghum and barley. The USDA model anticipates that China's coarse grains imports will rise 16 million metric tons. Mexico is the second most important growth market, with import growth of 8 million metric tons. Korea also shows import growth of more than one million tons.