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The Industry.

The U.S. Grains Council develops export markets for U.S. barley, corn, grain sorghum and related products. The Council believes exports are vital to global economic development and to U.S. agriculture's profitability.

Founded in 1960, the Council is a private, non-profit corporation with nine international offices and programs in more than 50 countries. Its unique membership includes producer organizations and agribusinesses with a common interest in developing export markets. Membership funds trigger matching market development funds from the U.S. government and support from cooperating groups in foreign countries to produce an annual development program valued at more than $28 million.

Source: US Grains Council

http://www.grainsea.org/

U.S. Grains & Co-Products

The Council tailors its programs to meet individual countries' cultures and needs. The technical programs provide information to end users (livestock and poultry producers) on how to use the grains and co-products effectively and manage their operations efficiently. Our trade servicing efforts educate potential and current customers, including traders about the U.S. marketing system, including financing, government programs; U.S. feed grains quality and prices. Our trade policy initiatives identify foreign barriers to U.S. feed grains exports.

U.S. Grains Council provides information on how to buy Grains including Corn, Sorghum, Barley from US suppliers. Corn co-products including DDGS and Corn Gluten Meal (CGM) can also be bought and have suppliers listed on the website.

Pricing information can be made available on request or the buyers could contact the respective suppliers. Indicative prices are available in the weekly reports available in the Market Perspectives Section

Source: US Grains Council

http://www.grainsea.org/?page_id=77

KEY PRIORITIES & INITIATIVES

Strong Trade Policies Remain Vital To U.S. Producers

MAIZALL, the international maize alliance, continued to work on projects that benefit corn growers in the United States, Argentina and Brazil, honing their strategy and finding new opportunities to work globally in a changing policy environment. The Council also worked closely with its sister grower organizations to make the case for expanded market access through the Trans-Pacific Partnership (TPP) and Trans-Atlantic Trade and Investment Partnership (T-TIP) negotiations.

Export Exchange 2016: A Hit

With more than 200 internationalbuyers of coarse grains from more than35 countries, Export Exchange 2016 facilitated the sales of 2.6 millionmetric tons (102.4 million bushels) ofcoarse grains and co-products valuedat $460 million.

Identifying And Overcoming Barriers

The Council played a key role in the U.S. ethanol and DDGS industry's defense againstanti-dumping and countervailing duties investigations by China. This coordination wasessential to the industry being represented well throughout the proceedings in China and keeping the U.S. industry informed.

U.S. CoRN & SORGHUM IN SOUTH AFRICA

South Africa experienced a severe drought in 2016 and needed to import corn, but taxed portfacilities and lagging biotech trait approvals hindered the country's ability to import its needs. To help overcome these issues, the Council hosted a team of South African grain buyers to the United States, sent experts to South Africa and facilitated communication among there levant parties in the public and private sector. Ultimately, South Africa allowed the import of U.S. corn and purchased U.S. sorghum.

Ethanol Export Promotion Program Swings Into Action

The Council is building the foundation for future ethanol exports. From workshops in Japan and South Korea to hosting a trade team from Southeast Asia and participatingin USDA missions to Mexico, the Council is engaging in developing markets for this renewable fuel source with partners in the U.S. ethanol industry.

CAPTURING & BUILDING DEMAND

Finding New Grain Demand

From working in markets like Cuba and Tanzania that will take years to develop and open to U.S. trade torecapturing market share in re-emerging markets NkeAlgeria and Malaysia, the Council's presence supports demand growth in new and emerging markets.

Algeria experienced a178%increase in U.S. corn imports during the 2015/2016 marketing year.

Bangladesh BOUGHT100,000metric tons of U.S. corn (3.9 million bushels) for the first time in recent history.

Serving Loyal Markets

The Council hosted trade teams from Taiwan, Japan and South Korea to help familiarize grain end-users and buyers with production, quality standards and nutritional value of U.S. coarse grains and co-products. These face-to-face interactions are key to building and maintaining trust in the United States as the long-term supplier of high-quality grain.

Developing Market Share

The Council's Colombia 2030 report shows a bullish potential for expanding U.S. feed grainexports, with corn exports projected to reach 5.5 million metric tons (216.5 million bushels)in 2020 and 7.8 million tons (307million bushels) in 2030. Based on this research, the Council pivoted to a more engaged stance in this market, hosting trade teams, organizing trade schools and providing individual consultations for key buyers.

United States Department of Agriculture National Agricultural Statistics Service

Corn and Soybean Production Up in 2016, USDA Reports Winter Wheat Seedlings and Grain Stocks also reported

WASHINGTON, Jan. 12,2017 -- Ample rain and moderate temperatures across the Nation's mid-section led to record-high yield and production for corn and soybeans, both key U.S. crops, in 2016, according to the Crop Production 2016 Summary released today by the U.S. Department of Agriculture's National Agricultural Statistics Service (NASS).

U.S. corn growers produced 15.1 billion bushels, up 11 percent from 2015. Corn yield in the U.S. is estimated at 174.6 bushels per acre, 6.2 bushels above last year's average yield. Area harvested, at 86.7 million acres, is up 7 percent from 2015. The 2016 corn objective yield data indicate the third highest number of ears per acre on record for the combined objective yield States with record high ear counts in Ohio.

Soybean production for 2016 totaled a record 4.31 billion bushels, up 10 percent from 2015. With record high levels across nearly all of the northern United States, from the northern Great Plains to the Appalachian Mountains, the average soybean yield is estimated at a record high 52.1 bushels per acre, 4.1 bushels above last year's yield. Harvested area in 2016, at a record 82.7 million acres, is up 1 percent from 2015.

For 2016, all cotton production is up 32 percent from 2015, at 17.0 million 480-pound bales. The U.S. yield is estimated at 855 pounds per acre, up 89 pounds from last year's yield. Harvested area, at 9.52 million acres, is up 18 percent from last year.

Sorghum grain production in 2016 is estimated at 480 million bushels, down 20 percent from 2015. Area planted for sorghum, at 6.69 million acres, is down 21 percent from last year. Harvested area, at 6.16 million acres, is down 22 percent from 2015. Grain yield is estimated at a record 77.9 bushels per acre, up 1.9 bushels from last year. Record high yields are estimated in Georgia, Kansas, and Nebraska.

Also released today were the Winter Wheat and Canola Seedings and Grain Stocks reports. The Winter Wheat Seedings report is the first indicator of this year's winter wheat acreage. Planted area for harvest in 2017 is estimated at 32.4 million acres, down 10 percent from 2016 and 18 percent below 2015. This represents the second lowest U.S. acreage on record.

In the Grain Stocks report, corn and soybean stocks were both estimated to be up 10 and 7 percent from 2015, respectively. Corn stored in all positions totaled 12.4 billion bushels, while soybeans totaled 2.90 billion bushels. All wheat stocks were up 19 percent from last year. All wheat stored in all positions totaled 2.07 billion bushels.

The full Crop Production 2016 Summary is available online at www.nass.usda.gov/Publications. The report contains year-end acreage, yield and production estimates for grains and hay; oilseeds; cotton, tobacco and sugar; dry beans, peas and lentils; and potatoes and miscellaneous crops.

Source: United States Department of Agriculture National Agricultural Statistics Service

https://www.nass.usda.gov/Newsroom/2017/01_12_2017.php

Industry Environment

U.S. export grain marketing is essentially a private sector system; with the exception of humanitarian food aid, the U.S. Government does not directly engage in the day-to-day marketing of grain and oilseeds. Grain and oilseeds are sold by competing private-sector merchants using predominately private facilities. When the US Government acts to export for international food assistance it contracts for commodity and logistics with the private-sector system.

The US grain export system is a large, diverse, and evolving industry including public, private and cooperatively owned and managed facilities and trading entities. The industry must constantly seek added efficiencies, mitigate the enormous risks associated with international trade in a mature and politically charged environment, compete and trade with subsidized and state controlled organizations, upgrade export facilities and streamline logistical capabilities in order to sustain the export of US agricultural products.

As much as one third of all grain produced in the U.S. moves into export. In 2003 approximately $20 billion worth of grains and oilseeds were exported from the United States via this system. It is expected that over 100 million metric tons, of primarily US corn, soybeans and wheat, were handled by the US grain export system in the calendar year 2003. Annual volumes and value vary widely based on pricing, currency values, US market access, and global supply and demand for the commodities produced in the United States.

Characteristics of the system include

* Highly efficient system that can receive, store, sort, blend and ship large amounts of grain of uniform quality to a diverse international customer base

* Competitive suppliers provide several options for buyers by proving a system that is highly flexible (food, feed, industrial markets).

* System relies on contract sanctity and has built-in system of dispute resolution that includes several private dispute settlement mechanisms that provide an alternative to public judicial system. Integrity in business relationships combined with the ability to equitably resolve disputes in a timely and cost effective manner are a hallmark of the US grain export system.

* At export, multiple commodity loading ability is combined with vessel-loading rates that reach 3200-3400 tons per hour. Year round capacity to supply a wide assortment of contractual specifications for both quality and quantity at several different ports

* US grains and oilseeds must meet rigorous U.S. government standards and destination market requirements before being certified for export shipment. Lots not meeting contractual specifications are normally rejected.

* Grain Quality inspections are certified by the US Government. For most US exports a Federal agency, the Grain Inspection Packers and Stockyards Agency (GIPSA,) provides Federal Grain Inspection Service (FGIS) certification of quality under official US grain standards, performs vessel hold inspections, and certifies the weight of export shipments.

* US Animal Plant Health Inspection Service officials (USDA/APHIS) provide for Sanitary and PhytoSanitary requirements by certifying shipments as required by international convention and sovereign regulation

* Third party private inspection laboratories are available to perform a wide variety of process certification, inspections and testing services to meet buyer and contract requirements.

Exporting grain is both a competitive and a capital-intensive industry. Since the margin of profit to be earned from moving a ton of grain can be quite small, exporters depend upon moving large volumes very quickly. They seek to achieve an economy of scale that lowers their average fixed costs per unit of volume handled, provides operating flexibility, increases bargaining power in chartering for shipping, and improves the services they can provide worldwide.

The following drivers frame global supply and demand for agricultural products and the competition to meet demand among supplier countries early in the 21st century:

* Trade liberalization and opening of markets, in particular the reduction of trade barriers through global progress in World Trade Organization agreement and implementation.

* Political Conflicts, Economic and Social Stability.

* The rise of questionable sanitary and phyto-sanitary issues and anti-dumping actions, replacing tariffs and quotas as the trade barriers of choice

* Population growth and heavy urbanization in developing countries,

* Growth in consumer income and of the middle class in emerging markets,

* Rising demand for high-value products, especially new, specialty products,

* Stagnant aggregate demand in high-income, developed countries,

* Global debate over the value, safety, and morality of biotechnology and other technologies,

* Relative cost of production among international competitors, and

* The competitiveness of marketing infrastructure.

Source: North American Exports Grains Association

http://www.naega.org/exporting/index.shtml
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Publication:United States Grains
Date:May 9, 2019
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