A good demand from Mexico for U.S. corn has recently brought the export record of the United States into the slot and lifted the initial export weakness of this Vermarktungssaison. Traditional buyers like South Korea and Japan had bought much less.
So Mexico will crowd out probably Japan for the first time since the 1980s by the U.S. maize importers first place. This illustrates how big the dependency on U.S. exporters of its southern neighbor has become. The former superpower in the World cereals business, the United States, have become strong competitors in the Ukraine and Brazil.
This is also a result of the multi-year resource boom, which began in 2007 and strengthened agriculture in South America and in Eastern Europe. Local governments and large retailers in the world like Cargill and ADM have invested in large scale infrastructure.
Now is the dominance of U.S. corn exporters at risk. They had at least an export volume amounting to us $ 8.3 billion last year. Exports correspond to one-third of the U.S. corn production. The competition has become very large and dramatic change of trade routes in such a short time is dynamic. So, Japan in the United States bought its second smallest amount of corn since 1999. For South Korea, it is also the second smallest crowd for a decade.
The tighter of the U.S. dollar after the Brexit vote last week she could break into U.S. corn abruptly currently good demand. The USD rose to a three-month high, after the British voted in favor of the withdrawal from the EU. As a result, that all US dollar listed commodities in countries become more expensive, trading in other currencies. Benefit from Brazil, Argentina, and the euro zone. The price is only for the buyer. When Asians shunned U.S. corn last fall, the Association advised grain exporters of U.S. for an orientation to markets in the vicinity. In response, competing exporters in South America Brazil and Argentina established a free trade area for the MERCOSUR countries.
In Latin America, domestic demand for corn by the growing livestock production is currently good but the corn crop in the United States will be again very high this autumn and's questions arise whether this crop in the world market can be placed. Mexico's import demand varies enormously and there are enough alternatives as feed grains such as sorghum. Last month he lowered U.S. agricultural attache in Mexico its import expectations around a million tonnes, compared with the previous estimate. Also increases the competition of suppliers from South America. Brazil's Minister of agriculture increased the price for corn, so that more corn rather than soybeans are planted. In Argentina, the corn acreage by 20% will increase after the export policy was liberalized last year.
