Corn exports on track for all-time record
Grains Council is key to U.S. corn growers export success
Written by Jonathan Eisenthal
China is rapidly rebuilding its pork industry in the wake of a devastating bout of African Swine Fever (ASF), which destroyed around half of its pig herd. Small to mid-sized pork producers have switched to poultry feeding or other types of operations, while large-size operations are repopulating their pig herds. These new facilities have the latest biosecurity measures to keep ASF from returning. With all these changes, China is generating a record demand for feed grains.
China is not the only export destination with growing demand. Exports are fueling a strong U.S. grains market that appears to have continuing strong demand for months, perhaps years, into the future, according to experts with the U.S. Grains Council (USGC). USGC is a nonprofit membership organization devoted to developing overseas markets for U.S. corn, barley, sorghum, ethanol and dried distillers grains with solubles (DDGS) high-protein livestock feed.
Through farmers’ investment in the Minnesota corn check-off, Minnesota Corn partners with organizations like the U.S. Grains Council to build markets abroad for Minnesota-grown corn and ethanol. U.S. farmers are on track to export 2.85 billion bushels of corn in the marketing year ending Aug. 31, according to USDA projections. That would be an all-time record.
“What we see in the export market, and even the comeback of the domestic fuel ethanol market, has brought us strong demand,” said Cary Sifferath, senior director of global programs for USGC. “We have seen some very good corn prices the last nine months or so. There has been a fair amount of volatility in the last 60 days, but also opportunities for corn farmers to lock in prices for the 2021-22 marketing crop year.”
“China started buying corn last summer, and then when the new marketing year started on Sept. 1, we saw them really explode,” Sifferath reported. “Right now, between what we already have shipped and what’s still on the books to ship, it’s a total of 23.33 million tons, or 918.5 million bushels. That would be a record amount of corn exported to any one destination.”
Mexico, the largest U.S. corn export market for the past several years until China displaced it, is still on pace to make its largest-ever purchase of U.S. grain, at 585.8 million bushels. Japan, another past top market for U.S. corn, is projected to buy 416.7 million bushels before the end of this marketing year.
Other countries are also part of the demand picture for U.S. corn. Latin American and Caribbean countries will purchase 300 million bushels of corn this year. Other important destinations include South Korea, Morocco, Tunisia, Egypt and Saudi Arabia.
International presence
USGC has nine international offices, plus its U.S. headquarters in Washington, D.C. The Council has a full-time presence in 28 locations and operates programs in more than 50 countries and the European Union. The foundation of these activities is farmer and agribusiness memberships.
USGC membership is comprised of 26 state check-off organizations, one national check-off organization and 30 state-based entities, including growers associations, state departments of ag and farm bureaus. It also has 114 agribusiness members.
Chad Willis, a farmer from Willmar, Minn. and current Minnesota Corn Research & Promotion Council member, will become USGC chairman on July 30.
“We are very excited about Chad becoming our chairman, and we are very appreciative of the support of the Minnesota Corn Research & Promotion Council and the Minnesota Corn Growers Association,” Sifferath said.
