JEFFERSON CITY — With an influx in grain production, international trade is center stage. Missouri Corn is ramping up marketing efforts with our longstanding partners at the U.S. Grains Council and buyers across the globe. There are several notable notes in the trade arena:
Feed Grain In All Forms Breaks Record In 2016/2017 Marketing Year – Grain (in all forms) exports have increased 17 percent from the same time period a year ago. With one month remaining in the 2016/17 marketing year, U.S. feed grain exports in all forms are expected to hit a new record high thanks in part to the extensive marketing efforts by the Council and partners. Year-over-year gains for corn and the grain equivalent of ethanol bolstered the record with corn exports totaling 2.15 billion bushels during the first 11 months of the marketing year. This is a 29 percent jump and the best performance for U.S. corn equivalent exports since 2007-08.
Vietnam Ends Suspension Of U.S. DDGS – Earlier this month it was announced Vietnam will lift its suspension of U.S. distiller’s dried grains with solubles (DDGS) imports and ease fumigation requirements for U.S. corn and wheat imports. The announcement follows many months of work to resolve the suspension implemented late last year. Grains Council CEO Tom Sleight noted in a statement that Vietnam is one of the fastest growing feed markets in the world.
US-Korea Free Trade Agreement At Risk? – Talk of U.S. withdrawal from the U.S.-Korea Free Trade Agreement spurred action by agriculture entities who noted such action would lead to substantial losses in sales to our third largest corn customer. South Korea is also the third largest importer of U.S. DDGS this marketing year, purchasing 850,000 metric tons. Following a strong response from grassroots, as well as agriculture industry, talk of withdrawal has tamed – for now.
Brazil Imposes Tariff on U.S. Ethanol – Late last month, Brazil imposed an immediate two-year tariff-rate quota system for ethanol imports. This tax will apply a 20 percent tariff to purchases of U.S. ethanol after a 158.5 million gallon quota is met. U.S. ethanol industry supporters, including Growth Energy, the Renewable Fuels Association and U.S. Grains Council instantly responded, calling on the U.S. government to develop an immediate response. This year alone, fuel ethanol exports to Brazil through July hit 310 million gallons. As the largest ethanol export market for American producers, this measure will have detrimental impacts for the ethanol industry and rural farm economies if it isn’t reversed.
— Missouri Corn Growers Association
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