By Cary Sifferath, U.S. Grains Council Regional Director for the Middle East and Africa

The U.S. Grains Council travelled to Egypt, Morocco and Saudi Arabia late April and early May to continue rolling out the Council’s 2013/13 Corn Export Cargo Quality Report to major feed grain importers, feed millers, poultry and dairy companies. In just its second year, importers and end-users in all three markets were impressed and appreciative of the data the Council supplied on the U.S. corn crop through the quality report, noting that they did not receive the same type of information from other origins of supply. However, due to current U.S. corn stock levels and prices, partly attributable to the drought, U.S. corn is at a major premium to South American and Black Sea origin corn (at $30-40 metric tons or more). This is making U.S. corn sales and shipments to the Middle East and Northern Africa regions difficult.

Despite current prices, however, Almarai, the largest dairy company in Saudi Arabia and a major processor of dairy and other food products for the Saudi and neighboring Gulf region countries, has remained a reliable customer in the region for U.S. corn this year. With the volatility of corn and other grain and protein meal prices, it is interesting to note that major companies in Saudi Arabia have now chosen to secure their corn import needs at a set price, locking in their needs until 2014.

Buyers in all countries also expressed interest on the 2013/14 corn crop, including the outlook for U.S. farmers to catch up on corn planting after a slow start to the corn planting season. The Council assured importers that weather has also provided much needed moisture to the soil.