Corn Export Cargo Quality Report 2013/2014

II. INTRODUCTION

Corn quality information is important to foreign buyers and other industry stakeholders as they make decisions about purchase contracts and processing needs for corn for feed, food or industrial use. The U.S. Grains Council Corn Export Cargo Quality Report 2013/14 provides accurate, unbiased information about the quality of U.S. yellow commodity corn as it is assembled for export early in the marketing year. This report provides test results for corn samples collected during the U.S. governmentlicensed sampling and inspection process for U.S. corn waterborne and rail export shipments.

This Export Cargo Report is based on 412 yellow commodity corn samples collected from corn export shipments as they underwent the federal inspection and grading process performed by the U.S. Department of Agriculture’s (USDA) Federal Grain Inspection Service (FGIS) or licensed inspectors. The sample test results are reported at the U.S. aggregate level (U.S. Aggregate) and by export points associated with three general groupings that are labeled Export Catchment Areas (ECAs). These three ECAs are identifed by the three major pathways to export markets:

  1. The Gulf ECA consists of areas that typically export corn through U.S. Gulf ports;
  2. The Pacific Northwest ECA includes areas exporting corn through Pacific Northwest and California ports; and
  3. The Southern Rail ECA comprises areas generally exporting corn to Mexico by rail from inland subterminals.

The sample test results are also summarized by “contract grade” categories (“U.S. No. 2 or better” and “U.S. No. 3 or better”) to illustrate the practical quality differences between these two contract specifications.

A companion report, the U.S. Grains Council Corn Harvest Quality Report 2013/14, was released in December 2013 and reported on the quality of the corn as it entered the U.S. marketing system. The Harvest Report 2013/14 and the Export Cargo Report 2013/14 should be studied together so changes in corn quality that occur between harvest and export can be understood. A review of how corn quality evolves from the field to the ocean vessel or rail car is provided in the “U.S. Corn Export System” section.

This Export Cargo Report 2013/14 is the third in a series of annual surveys of the quality of the U.S. corn exports early in the marketing year. In addition to the Council reporting the quality of corn exports early in the current marketing year, the cumulative Export Cargo Report surveys will provide increasing value to stakeholders. The three years of data are beginning to enable export buyers and other stakeholders to make year-to-year comparisons and assess patterns in corn quality based on growing, drying, handling, storage and transport conditions.

This report provides detailed information on each of the quality factors tested, including average, standard deviation and distributions for the aggregate of all samples and for each of the three ECAs. The “Quality Test Results” section summarizes the following quality factors:

  • Grade Factors: test weight, broken corn and foreign material (BCFM), total damage and heat damage
  • Moisture
  • Chemical Composition: protein, starch and oil
  • Physical Factors: stress cracks, stress crack index, 100-kernel weight, kernel volume, kernel true density, whole kernels and horneous (hard) endosperm
  • Mycotoxins: aflatoxins and DON

For the Export Cargo Report 2013/14, FGIS collected samples during the early part of November 2013 through March 2014 to generate statistically valid results for the U.S. Aggregate and by ECA. The objective was to obtain enough samples to estimate quality factor averages of the corn exports with a relative margin of error (Relative ME) less than ± 10%, a reasonable target for biological data such as these factors. Details of the statistical sampling and analysis methods are presented in the “Survey and Statistical Analysis Methods” section.

The Export Cargo Report does not predict the actual quality of any cargo or lot of corn after loading or at destination, and it is important for all players in the value chain to understand their own contract needs and obligations. Many of the quality attributes, in addition to grade, can be specifed in the buyer-seller contract. In addition, this report does not explain the reasons for changes in quality factors from the Harvest Report to the Export Cargo Report. Many factors including weather, genetics, and grain drying and handling affect changes in quality in complex ways. Sample test results can vary significantly depending on the ways in which a corn lot was loaded onto a conveyance and the method of sampling used.