Global events likely to increase export demand for US corn
A global trade expert says the war in Ukraine and drought in South America will likely ramp up demand for US corn this year.
Gregg Doud with Aimpoint Research tells Brownfield of the top five corn producing countries, the US now has the best supply and availability.
“Between Brazil, Argentina, Ukraine, and the US, that is about 90% of the corn on the world market being exported. So, when you have drought in Brazil and Argentina and the problem in Ukraine, really the only other place to get corn loaded on a boat to go somewhere is the United States.”
He says much of the demand will come from China as it continues to rebuild its hog herd following African Swine Fever.
“China is the biggest importer of corn in the world by quite a big margin. Somewhere between 25 million and 29 million tons of corn that they have needed the last couple of years and I think they are going to continue to hang in there, considering the price of corn internally in China.”
Doud says the ban on swill feeding hogs in China to prevent the spread of ASF has increased their need for corn and soybeans as feed, which is a new key driver in the global corn market that didn’t exist three years ago.