Latin American Demand Estimated at a Quarter of World Corn Market in 2014/2015

latin america corn

This week’s U.S. Grains Council’s (USGC) Chart of Note illustrates the importance of the top four Latin American corn importers - Mexico, Colombia, Venezuela and Peru - in the world corn market this marketing year in comparison to expected top 10 markets.

The top four corn importing countries in Latin America are estimated to make up more than a quarter of the world market for corn this year. In fact, combined they are expected to import more corn from the world than Japan, which is currently the top destination for U.S. corn.

USGC Corn Harvest Quality Report Highlights High-Quality, Record Crop

Chart of note,

This week’s Chart of Note illustrates the high quality of U.S. corn at harvest demonstrated in the U.S. Grains Council’s (USGC) 2014/2015 Corn Harvest Quality Report. According to this analysis, most samples from the 2014 U.S. corn crop would grade No. 1 based on the four grading factors of test weight, broken corn and foreign material (BCFM), total damage and heat damage.

Southeast Asian Feed Sector: Corn, DDGS and CGM

SEA feed industry demand for corn

This U.S. Grains Council’s chart of note illustrates five Southeast Asian countries’ growing demand for corn as livestock feed.

 In 2004, the region’s feed sector corn demand was 15 million metric tons. Less than a decade later, that demand has grown to more than 25 million tons, a 66.7 percent increase. This rise in demand is amid a decrease in the availability of local corn supplies, which results in a higher reliance on imported coarse grains and co-products.

Biofuels Mandates as Driver of Potential Ethanol Demand

This Chart of Note shows the theoretical volume of ethanol demand by non-U.S. markets with existing biofuels mandates. If countries enforced existing biofuels mandates using ethanol, their gasoline use in 2012 would suggest that the top 10 ethanol consumers would require 3.5 billion gallons of the renewable fuel. The next 10 would add another 393 million gallons of demand.

Import Margins Balloon in China

Corn in China

This week’s U.S. Grains Council Chart of the Week illustrates that despite declining corn prices in the United States, corn prices in China continue to rise. Following years of increasing corn production, China has an abundant supply of corn available. However, transportation costs from production areas to areas that use corn make corn in China more expensive than corn imported from the United States. According to the chart, corn in China is selling corn at almost $155 more per ton than corn imported from the United States would cost.