Hubbs: U.S. corn exports slow
November 22, 2019 By Julie Harker Filed Under: News
U.S. corn exports got off to
a very slow start this marketing year and an ag economist says a lot of that
has to do with Brazil.
Todd Hubbs with the University
of Illinois says that large run up on expectations of a shorter U.S. crop
weakened this summer and a huge differential formed between Brazil and U.S.
export prices, “Depending on what one you looked at, it was over 40-cents. And
it just so happened this year the safrina crop in Brazil was huge. It was 2.88
Billion bushels which is about 760-Million more bushels than last year.”
Hubbs says Brazil has been
exporting corn at a record pace since July, taking a lot of the traditional
U.S. export markets.
He tells Brownfield there
was a somewhat positive export report November 12th but projections remain
the lowest since the drought of 2012.
Hubbs says South America has
had a slow start to soybean planting, “Will we see them roll the dice? I think
a lot of them will because they’ve got very good corn prices this year. But, that
opens up that second crop to their winter dry season, you know, maturing in the
winter dry season which could affect yield.”
Although it’s uncertain, any
reduction in the South American corn crop would help U.S. farmers in 2020.
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