U.S. corn export to Japan is in demand again
08 April 20141 min reading
Preferring South America in corn import due to the negative market conditions arising from the drought in the last season, Japan has returned to America this season.
U.S. corn exports to Japan have begun to rebound with projections indicating a strong return for the remainder of the 2013/2014 marketing year which began Sept. 1.
U.S. Department of Agriculture reports show outstanding sales and accumulated exports to Japan that have totaled 331 million bushels for this marketing year through March.
In the 2012/2013 marketing year, the U.S. Corn Belt experienced a crippling drought that drove U.S. corn export prices to uncompetitive levels. While many longtime Japanese buyers continued to express a preference for U.S. sourcing, the cost disadvantage imposed too high premium. Thus, Japan turned to South American corn. However in 2013, U.S. corn production rose to 14.0 billion bushels, an all-time high, with an average yield of 160.4 bushels per acre. Prices have responded accordingly, and Japanese buyers are again sourcing U.S. corn.
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