U.S. exporters eye Latin America as growth market for low-priced corn
By Michael Hirtzer
CHICAGO May 15 (Reuters) - Increases in 2015/16 U.S. corn exports are likely to be spurred by growing demand in countries like Colombia and Peru, analysts said on Friday, as sellers replace market share lost in China and elsewhere in Asia to cheaper South American supplies.
The U.S. Department of Agriculture this week said corn exports would rise by roughly 2 million tonnes to 48.26 million tonnes in the season starting Sept. 1, the second straight year of increased shipments.
"Additional demand is out there because prices are lower - a majority of buyers are more comfortable buying. That's spread out across a lot of markets but Latin America has really picked up," said Kurt Shultz, director of global strategies at the U.S. Grains Council, a trade group.
Corn futures at $3.65 per bushel are near five-year lows on the back of record global production.
"We are finding new markets but it will be a price battle," said Jack Scoville, analyst at the Price Futures Group.
While U.S. corn shipments from Sept. 1 to May 7 were down 5 percent from a year ago at 28.8 million tonnes, shipments to Peru through to March, the most recently available data, were up 80 percent, according to the USDA.
The agency predicts steady shipments there next year, of more than 2 million tonnes.
Peru typically bought most of its corn from Argentina, Shultz said. But import duty incentives agreed in a 2009 trade deal kicked in last autumn, making U.S. supplies more attractive. Continuación...