Surging U.S. corn exports should gain even more pace, supported by a weakening dollar and dry weather in Argentina and South Africa.
U.S. corn exports sales jumped up since the slowest Christmas and New Year’s period in four years.
The dollar on January 28 dropped to the lowest level in more than three years, making U.S. goods cheaper for importers. Corn shipped from the Gulf Coast and Pacific Northwest is about 3$ to 5$ per tonne cheaper than Argentina supplies.
Hot and dry Argentine weather stressed crops and stronger peso slowed grain sales. Drought in South Africa could reduce its harvest area by 18 percent.
By the mid-January total U.S. corn export sales of 30.4 million tonnes were 22 percent below year ago. The USDA expects a 13.5 percent decline this season.
U.S. soybean growers are losing market share in the all-important market because the race to grow higher-yielding crops has robbed their most prized nutrient: protein.