The final 2017/2018 marketing year’s numbers are out - and for the second year in a row, the United States has set a new record for exports of feed grains and co-products, led by higher corn and ethanol shipments.
Overall, the United States exported nearly 120 million metric tons of feed grains in all forms (GIAF), translating into roughly 4.75 billion bushels or a third of U.S. production. The marketing year’s exports increased six percent or 6.5 million tons (256 million bushels) above last year’s record-setting levels.
"For U.S. grain producers, our 2017/2018 export performance was outstanding and above recently revised expectations due to particularly strong shipments in the second half of the marketing year,” says Mike Dwyer, U.S. Grains Council (USGC) chief economist. “U.S. agricultural producers saw international demand for their products - in one form or another - continue to rise. This export growth is vital to our feed grain producers who continue to see their yields and overall production rise amidst challenging trade policy conditions."
Southern neighbor and trade agreement partner Mexico topped all other markets in GIAF imports, with total marketing year shipments growing 6.3% year-over-year to a new record of 25.2 million tons (almost 1 billion bushels in corn equivalent). By category, Mexico ranked as the largest buyer of U.S. corn, barley and dried distiller’s grains with solubles (DDGS), with sales in each category increasing from the prior year.
Japan was the second largest overall GIAF market overseas in 2017/2018 with shipments roughly unchanged from last year at 16.9 million tons (665 million bushels). Japan ranked as the second largest buyer of U.S. corn and U.S. sorghum, the third largest buyer of U.S. barley and the ninth largest market for U.S. DDGS.
South Korea rounded out the top three overall importers, increasing purchases of U.S. feed grains and co-products by 11.8% to 9.33 million tons (367 million bushels) - a new record. Notably, South Korea ranked as second largest buyer of U.S. DDGS, the third largest buyer of U.S. corn and sixth largest buyer of U.S. ethanol in addition to significant sales of U.S. sorghum.
The Council utilizes the feed grains in all forms calculation to help capture how important overseas markets are for U.S. feed grain producers by including both exports of corn, barley and sorghum and products made with them as inputs including the corn equivalent of co-products like ethanol, DDGS and corn gluten feed/meal as well as beef, pork and poultry meat exports.
By category, U.S. corn exports increased 6% to 61.8 million tons (2.43 billion bushels). Corn exports to Mexico reached a record high of 15.7 million tons (618 million bushels), up nearly 13% over last marketing year.
This year’s sales continue strong export growth seen over the last five marketing years despite uncertainty surrounding the negotiation of the U.S.-Mexico-Canada Agreement (USMCA), thanks in large part to the market access provided by the existing North American Free Trade Agreement (NAFTA) and the resulting well-developed North American supply chains and robust market development work by the Council and its members.
U.S. ethanol exports surged 19% to a record 1.62 billion gallons (equivalent to 547 million bushels of corn), thanks to greatly expanded worldwide market development work by the Council and ethanol industry partners including Growth Energy, the Renewable Fuels Association (RFA) and generous support from state corn organizations. Recent successes are also aided by a competitively-priced product compared to those of other ethanol exporting countries as well as fossil fuel alternatives like MTBE (methyl tertiary butyl ether) and aromatics (benzene, toluene and xylene).
Despite continued trade policy challenges, China remained the top buyer of U.S. sorghum with 4.2 million tons (165 million bushels) in sales in 2017/2018, largely sold before tariffs were enacted that continue to inhibit purchasing. Overall, sorghum exports were down nearly 14 percent year-over-year at 5.16 million tons (203 million bushels), but several smaller markets did increase purchases, including Japan, Sudan, the European Union (led by Spain), Somalia and South Korea.
U.S. barley exports remained roughly unchanged over the last three marketing years with nearly 550,000 tons (25.3 million bushels) sold in 2017/2018. Mexico continued to dominate purchasing at 394,000 tons (18.1 million bushels), further evidence of the importance of this top market.
