South American Crop Problems May Stimulate U.S. Grain Exports

According to USDA’s Foreign Agricultural Service, total coarse grain production in 2009 is expected to increase 2.4%, but total feed use will also increase, Farm Progress reports. Erick Erickson, U.S. Grains Council special assistant for planning, evaluation and projects said that U.S. farmers’ stake in the global marketplace has become more important than ever before.

“There are a lot of uncertainties of what 2009 will bring for U.S. commodities, world economic growth, oil prices and financial turnaround,” Erickson said. “The downturn in total world trade and increase in exportable supplies in countries like Russia, the United Kingdom and the European Union will provide a tough year for U.S. coarse grains exports. However, weather conditions in Brazil and Argentina have hurt their crops, which may stimulate demand for U.S. exports.”