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U. S. could lose status as largest exporter of corn
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Jim
Posted 11/25/2012 00:33 (#2715328 - in reply to #2715208)
Subject: RE: U. S. could lose status as largest exporter of corn


Driftless SW Wisconsin

There was a program on NPR the other day discussing how CHS has had to purchase corn from other countries including the Ukraine to fill its contracts. Here is a thread/picture from my visit to the Ukraine last month.

I don't think there is anything to be alarmed at - nature just threw the US cornbelt a weather curveball this past season.  That raised prices and other countries around the world, hungry for something they can export for hard currencies, are doing everything they can to increase corn production.  Competition and capitalism at work.

The question is what happens to world corn trade/flows when corn prices come down to the $4-$5/bu range if we have a good crop year next year? I suspect that once these newer areas discover growing corn, such as this current thread from Australia, they are likely to stay in the corn growing business.

This geographic expansion of corn production will likely dampen future price spikes like we are seeing here recently.

Again, competition is just a fact of business.  We are in a world wide market - and now a more world wide production environment to go with the market.  I believe we in the US will remain the low cost producer.

We do need to emphasize and increase the QUALITY of our corn that is exported around the world to remain the preferred supplier.  jmho.

Jim at Dawn



Edited by Jim 11/25/2012 23:14
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