After months of struggling corn exports due to a strong U.S. dollar and larger than expected global supplies, U.S. corn exports are on the rise with key markets picking up demand late in the 2015/2016 marketing year. The U.S. Grains Council (USGC) will use this success to build momentum for corn exports into 2016/2017 and beyond.
As of May 19, sales of U.S. corn totaled 41.8 million metric tons (1.6 billion bushels) for the marketing year ending Sept. 30, which is down 1.2 million tons (47.2 million bushels) from the same time last year. However, the brisk pace of corn sales in recent weeks is narrowing that gap. For example, during the week of May 6 to 12, U.S. corn net sales were up 33 percent from the previous week and 13 percent from the prior four-week average.
“We are excited to see demand for U.S. corn increasing around the globe as we are three-quarters of the way through a tough marketing year,” said USGC President and CEO Tom Sleight. “Our efforts on the ground in more than 50 global markets have helped maintain and build this demand each and every day.”
The Council’s plans for the remainder of 2016 are aimed at continuing this uptick as well as laying the groundwork for ongoing demand in future marketing years.
A major upcoming program is Export Exchange 2016, a global conference sponsored by the Council and the Renewable Fuels Association (RFA) every other year that hosts 200 key customers from around the world who also attend pre- and post-tours of the United States’ production areas.
“The buyers who participate in this conference not only do business directly while there, they also make connections that facilitate future sales,” Sleight said. “This has become one of our premiere activities that helps build demand in the near future and over the long term.”
In addition to the trade teams coming into the United States for the Export Exchange event, the Council will host teams throughout the summer. One of the first teams of the season will happen in mid-June when Taiwanese swine producers, government officials, researchers and association representatives visit the Midwest to learn about both modern U.S. swine production practices and the U.S. coarse grains industry.
“Trade teams are a critical and unique part of USGC’s programming each year,” Sleight said. “These teams not only educate decision makers in export markets but also allow members of the U.S. industry to build personal relationships with their customers that can solidify long-term business and prompt new sales.”
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