Reports CTRM for Agricultural and Soft Commodities

CTRM for Ags & Softs Corn Corn has gained increasing attention in recent years.While historically, and most commonly, viewed as animal feed or human food source in its granular form, corn has also been processed and used to manufacture hundreds if not thousands of other food or industrial products, including flours, oils, starch, alcohol, sweeteners, plastics and, increasingly, motor fuels. Overview Although the United States dominates world corn trade, exports account for a relatively small portion of demand for U.S. corn--about 15 percent. This low demand for exports means that corn prices are largely determined by supply-anddemand relationships in the U.S. market, and the rest of the world must adjust to prevailing U.S. prices. The high influence of U.S. corn supply makes world corn trade and prices dependent on weather in the U.S. Corn Belt. Because Argentina, the second-largest corn exporter in most years, is in World Corn Trade - USDA the Southern Hemisphere, Argentine farmers plant their corn October/September Year, Thousand Metric Tons after discovering the size of the U.S. crop, thereby providing a 2011/12 2012/13 2013/14 2014/15 quick, market-oriented supply response to short U.S. crops. TY Exports Argentina 16,501 22,789 12,846 18,442 Several countries--including Brazil, Ukraine, Romania, and Brazil 12,674 26,044 22,041 21,909 South Africa--have had significant corn exports when crops Burma 200 550 700 850 European Union 3,287 2,193 2,401 4,000 were large or international prices attractive. Production Corn Production 20141/15 – 1000 Metric Tons 1. 2. 3. 4. 5. United States China Brazil EU-27 Ukraine 361,091 215,500 75,000 74,160 28,450 China has been a significant source of uncertainty in world corn trade, swinging from being the second-largest exporter in some years to occasionally importing significant quantities. China's corn exports are largely a function of government export subsidies and tax rebates, because corn prices in China are mostly higher than those in the world market. Large corn stocks are expensive for the government to maintain, and Chinese corn export policy has fluctuated with little relationship to the country's production, making China's corn trade difficult to predict. World corn trade peaked in 1980/81, driven in large part by significant growth in imports to the former Soviet Union and European nations.However, with the collapse of the Soviets and thedevelopment of the European Union, crops grown within those geographic regions are now being directed with their jurisdictions, and global trade outside those areas has declined. However, during the 1990s and the early part of the twentyfirst century, increasing demand for meat-based proteins has © Commodity Technology Advisory LLC, 2016, All Right Reserved India Paraguay Russia Serbia South Africa Ukraine Others Subtotal United States World Total TY Imports Algeria Canada Chile China Colombia Cuba Dominican Republic Egypt European Union Guatemala Indonesia Iran Israel Japan Kenya Korea, South Malaysia Mexico Morocco Peru Saudi Arabia Taiwan Tunisia Venezuela Vietnam Others Subtotal Unaccounted United States World Total 4,674 2,188 2,027 2,331 1,831 15,157 4,470 65,340 38,342 103,682 4,768 2,858 1,917 601 2,398 12,726 5,421 82,265 18,262 100,527 3,889 2,714 4,192 1,736 2,104 20,004 6,839 79,466 50,684 130,150 1,100 3,012 3,200 2,900 745 19,800 9,537 85,495 46,773 132,268 3,231 747 906 5,231 3,209 743 1,054 7,154 6,113 691 1,724 4,000 1,221 14,892 400 7,636 3,309 11,172 1,943 1,772 1,816 4,341 853 2,596 1,600 12,335 100,689 2,228 765 103,682 2,918 493 844 2,702 3,266 911 1,046 5,059 11,362 678 2,719 3,700 1,224 14,412 100 8,174 3,048 5,676 1,684 2,254 2,063 4,232 846 2,154 1,700 11,620 94,885 1,377 4,265 100,527 4,156 679 1,456 3,277 4,436 928 1,011 8,726 15,919 767 3,501 5,500 1,652 15,121 800 10,406 3,476 10,954 2,349 2,232 2,684 4,189 993 2,626 2,800 13,737 124,375 5,048 727 130,150 4,116 1,500 1,400 5,516 4,400 900 1,100 7,800 8,700 850 3,200 6,200 1,300 14,656 900 10,179 3,400 11,269 2,000 2,700 3,000 4,200 1,050 2,000 3,500 14,562 120,398 11,061 809 132,268 44

Reports CTRM for Agricultural and Soft Commodities | Page 45