Trade Agreements A Good Deal For U.S. Feed Grains

Trade equals huge success for exports of U.S. feed grains in all forms, particularly to the 20 countries with which the United States has a free trade agreement (FTA). 

Exports of feed grains in all forms to FTA partner countries have increased by nearly 24 percent over the last 10 marketing years (2006/2007 to 2015/2016), according to U.S. Department of Agriculture (USDA) trade data and analysis by the U.S. Grains Council (USGC). 

Free Trade, Relationships Key To Market Competitiveness In South Korea

Recent events in foreign policy and the ongoing conversation about the value of U.S. trade agreements have put a spotlight on South Korea as a close U.S. ally and an important customer for U.S. products, including grains. 

South Korea is now the fifth largest market for U.S. agricultural exports, totaling $6.2 billion in purchases in 2016. The country was the fourth largest importer of both U.S. corn and distiller's dried grains with solubles (DDGS) as well as the seventh largest importer of U.S. barley in the 2015/2016 marketing year. 

2016/2017 Exports of Feed Grains In All Forms Up 33 Percent Year-On-Year

2016/2017 Exports of Feed Grains In All Forms Up 33 Percent Year-On-Year

U.S. exports of feed grains in all forms increased 33 percent year-over-year in the first six months of the 2016/2017 marketing year, according to recently published trade data from the U.S. Department of Agriculture (USDA) and analysis by the U.S. Grains Council (USGC).

That data showed the United States exported more than 56.6 million metric tons of feed grains in all forms - a calculation that measures grain products in corn equivalent - from September 2016 to February 2017, compared to 42.5 million tons during the same time the prior marketing year.

Chart of Note: The U.S. Is The Top World Net Exporter Of Ethanol

U.S. claims top ethanol export spot for third straight year.

In 2016, the United States was again the world’s largest net exporter of ethanol, according to U.S. Department of Agriculture (USDA) trade data and as demonstrated in this U.S. Grains Council (USGC) chart of note. 

Net exports are calculated as the difference between exports and imports. The 2016 calendar year concluded with U.S. net exports of 838 million gallons, the second highest level ever, exceeded only in 2011. U.S. ethanol shipments exceeded 1 billion gallons, and incoming shipments totaled nearly 215 million gallons in 2016. 

Chart of Note: Healthy Start for U.S. Ethanol in 2016/2017 Marketing Year

Exports of U.S. ethanol began with notable growth in the first month of the new marketing year, according to recent data published by U.S. Department of Agriculture's Global Agricultural Trade System (GATS).

The top three customers of U.S. ethanol in September 2016 were Canada, Brazil and China, respectfully. Exports of U.S. ethanol totaled 99.6 million gallons (903,000 metric tons of corn equivalent).

Chart Of Note: Members of DR-CAFTA Set New Trade Records in 2015/2016

Several Latin American countries set U.S. grain import records in the 2015/2016 marketing year, according to recent data reported recently by the U.S. Department of Agriculture, illustrated in this Chart of Note.

Guatemala, El Salvador, Honduras and Nicaragua have reached new records of U.S. corn imported while El Salvador and Honduras have new records of U.S. distiller's dried grains with solubles (DDGS) imported.

Chart of Note: Exports of U.S. DDGS Reach Record High in Middle East and North Africa

This week's Chart of Note illustrates the record breaking exports of U.S. distiller's dried grains with solubles (DDGS) to the Middle East and North Africa in the 2015/2016 marketing year.

According to the U.S. Department of Agriculture's (USDA's) latest trade data report, the United States exported more than 1.14 million metric tons of DDGS to these countries last marketing year, a new high.

Chart of Note: U.S. DDGS Exports Up 6 Percent

The U.S. Department of Agriculture’s (USDA) latest report on trade data showed exports of U.S. distiller's dried grains with solubles (DDGS) to all countries are up 6 percent this marketing year, ending Aug. 30. If this pace continues, the export tally for the year should approach 12 million metric tons, near a record set during the 2013/2014 marketing year. 

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