Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211


Agricultural News

Dr. Kim Anderson Says Brazil May Do to Corn What Black Sea Exporters Did to Wheat

Tue, 19 Nov 2019 15:09:56 CST

Dr. Kim Anderson Says Brazil May Do to Corn What Black Sea Exporters Did to Wheat
OSU Grain Marketing Specialist Dr. Kim Anderson offers the following analysis on the US corn and wheat markets:

"Brazil appears to be taking over the corn export market like it did with soybeans and like the Black Sea exporters did with wheat. Changes in the corn export market may lower long-term U.S. corn prices. And, because a certain percentage of wheat is sold for feed, the changes may also lower long-term wheat prices.

"A recent headline read, “Brazilian corn muscles in on turf of U.S. exporters (Braun - Reuters News, 13 Nov 2019). The article reports that Brazil has exported 60 percent more corn than during the same period last year, while U.S. corn exports are down 40 percent. The article states, “Brazilian corn exporters are enjoying a banner year thanks to a big crop and improved logistics, burnishing the country's status as a top global corn supplier and threatening the United States' traditional dominance in the arena.” It also says that “The United States is likely to remain the leading exporter for now, but Brazilian corn has recently been capturing more business from traditional U.S. customers than before.”

"Research shows that, since 1999, Brazilian corn production has increased from 1.25 billion bushels to 3.98 billion bushels. Brazilian corn exports increased from nine million bushels in the 1999/00marketin year to 1.6 billion bushels in 2008/19. During the same 20-year period, U.S. corn exports have remained about the same.

"From a bushels of corn exported viewpoint, Brazil is not reducing the number of U.S. bushels exported. However, Brazil’s percentage of the world’s corn exports has increased from 0.3 percent during the 1999/00 marketing year to 23 percent during 2018/19. The percentage of the world’s corn exports from the U.S. declined from 65 percent to 29 percent.

"During the 1999/00 corn marketing year, Argentina exported 16 percent of the world’s corn exports. Argentina’s corn export percentage had increased to 20 percent by 2018/19.

"Combining Brazil’s and Argentina’s percentages of the world’s corn exports, the combined percentage increased form 16 percent in 1999/00 to 43 percent in 2018/19. South American corn exports surpassed U.S. corn exports in the 2011/12 marketing year.

"South American (Brazil and Argentina) soybean exports surpassed U.S. soybean exports in the 2003/04 marketing year. Brazil’s soybean exports, alone, surpassed U.S. soybean exports in the 2012/13 marketing year.

"Before the 1977/78 soybean marketing year, the U.S. exported 96 percent of the world’s soybean exports. In 1977, Argentina captured eight percent of the world soybean market, and Brazil captured four percent. During the 2018/19 marketing year, Brazil controlled 51 percent, and Argentina controlled six percent of the world’s soybean market. The U.S. controlled 32 percent.

"The only difference in the wheat export market story is, instead of South America, it was Black Sea exporters (Russia, Ukraine, and Kazakhstan) that replaced the U.S.as the leading exporter of wheat. The Black Sea exporters’ wheat exports (hard red winter and hard red spring) surpassed U.S. wheat exports during the 2008/09 marketing year.

"During the last three marketing years, Black Sea exporters have exported an average of 35 percent of the world’s wheat exports. United States’ wheat exports have averaged 14 percent of world wheat exports.

"The world and its markets continue to change. The good news is that world demand for wheat, corn, and soybeans has grown and continues to grow. During the last 20 years (1999 - 2018), world wheat exports have increased 78 percent, corn exports have increased 181 percent, and soybeans exports have increased 228 percent

"While other countries may export more wheat, corn, and soybeans than the U.S., the fact remains that the U.S. will remain a major player in the wheat, corn and soybean market. That is good news for American farmers."

Source- Dr. Kim Anderson, Oklahoma State University     



WebReadyTM Powered by WireReady® NSI


Top Agricultural News

  • Tuesday, July 7, 2020 Market Wrap-Up with Justin Lewis  Tue, 07 Jul 2020 17:29:18 CDT
  • Oklahoma Grain Elevator Cash Bids as of 2:00 p.m. Tuesday, July 7  Tue, 07 Jul 2020 16:28:49 CDT
  • Road to Rural Prosperity--2020 Oklahoma FFA Stars Reagan Klassen and Kale Miller  Tue, 07 Jul 2020 16:26:55 CDT
  • OCA Convention On Schedule For July 24-25, Tulsa, So Producers Can "Lean on Pickup" To Discuss Issues  Tue, 07 Jul 2020 13:56:08 CDT
  • State Fair of Texas Canceled for 2020 Due to Coronavirus Concerns   Tue, 07 Jul 2020 13:18:50 CDT
  • In Their Words--Praise for Inhofe's Relief For Producers Act of 2020   Tue, 07 Jul 2020 12:47:49 CDT
  • OCA Convention On Schedule For July 24-25, Tulsa, So Producers Can "Lean on Pickup" To Discuss Issues  Tue, 07 Jul 2020 12:26:11 CDT
  • Cattle Raisers Applaud Bills to Increase Beef Processing and Availability  Tue, 07 Jul 2020 10:02:49 CDT

  • More Headlines...


    Ron salutes our daily email sponsors!

    Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit Ag Mediation Program P&K Equipment Tulsa Farm Show AFR Insurance Stillwater Milling Oklahoma Cattlemen's Association KIS FUTURES, INC.

    Our Road to Rural Prosperity sponsors!


    Search OklahomaFarmReport.com

    © 2008-2020 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.