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Weak Global Demand for U.S. Corn Good for Dairy

In some of the first good financial news for dairy producers in a long time, feed prices collapsed last week after China cancelled orders to buy U.S. corn. Even before the cancelations, China had been cutting back on its purchases, according to Sarina Sharp, analyst with the Daily Dairy Report. Through April 20, Chinese commitments to buy U.S. corn were 39% lower than at this point last year and 63% less than in April 2021.

“China has not been the only importer eschewing U.S. corn,” Sharp said. “Even after the recent selloff, American grains and oilseeds are simply too pricey to attract international buyers, and late-season rains in Brazil were better than expected, so massive yields are expected from the country’s second corn crop.”

According to Reuters, U.S. commitments to export corn to foreign markets outside of China as of late April were at their second-lowest level in two decades. Sales to Japan, another large market for U.S. corn, have been moving at their slowest clip in over 20 years, down more than 40% from year-ago volumes, she added.

May 5, 2023

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