Record production, high quality, and minor weather-related impacts are the top-line findings of the 2013/2014 Corn Harvest Quality Report, released today by the U.S. Grains Council.

"After a record drought last year, the world has been watching intently the 2013 U.S. corn crop," said USGC President and CEO Tom Sleight. "Production has rebounded, and quality is high despite some weather challenges. It's good news all around."

Total U.S. corn production of 13,989 million bushels (355.3 million metric tons) is an all-time record, and the average yield of 160.4 bushels/acre (10.1 tons/hectare) is the second highest on record. Weather was again the challenge, as a cold and wet spring delayed planting across much of the corn belt. Some areas also experienced flash-drought conditions in mid-summer, although this was generally offset by cooler temperatures.   

These weather adversities slightly reduced planted acreage and yield, while harvest quality remained very high. As compared to prior years, weather related impacts were modest and predictable. Aflatoxins were significantly lower than in the 2012 crop, with 99.4 percent of the samples testing below the FDA aflatoxin action level of 20 parts per billion. Starch content was up, while protein content, which is inversely related to starch, was down slightly. Oil content was similar to 2011 and 2012. Moisture content, reflecting weather conditions, was slightly higher, as were stress cracks, but total damage levels remained very low, comparable to 2012 and below 2011 levels. Average test weight remained well above the limit for No. 1 grade corn, indicating overall good quality.

"The report compares a wide range of quality factors across time," Sleight noted, "and after the rollercoaster ride last year, the message in 2013 was that there were no surprises. A few test factors ticked up, others ticked down, consistent with weather conditions, while overall quality at harvest was very high. With record production, this is certainly a good news report."

Corn quality will be affected by further handling, so the Council annually publishes a second report, the Corn Export Quality Report, which assesses quality at the point of loading for international shipment. The 2013/2014 Export Quality Report will be published in March 2014. 

The two reports, utilizing consistent methodology to permit the assessment of trends over time, are intended to provide reliable, timely, and transparent information on the quality of U.S. corn as it moves through export channels.

"The takeaway message this year is that the United States has abundant supplies of high quality corn," Sleight said. "We would remind buyers that they will get the quality level that they contract for, but with record production and good quality, it is a buyers' market as we head into 2014."

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The U.S. Grains Council is a private, non-profit partnership of farmers and agribusinesses committed to building and expanding international markets for U.S. barley, corn, grain sorghum and their products. The Council is headquartered in Washington, D.C., and has nine international offices that oversee programs in more than 50 countries. Financial support from our private industry members, including state checkoffs, agribusinesses, state entities and others, triggers federal matching funds from the USDA resulting in a combined program value of more than $26.5 million.

The U.S. Grains Council does not discriminate on the basis of race, color, national origin, sex, religion, age, disability, political beliefs, sexual orientation or marital/family status. Persons with disabilities, who require alternative means for communication of program information, should contact the U.S. Grains Council

WASHINGTON, D.C., Jan. 24, 2013 ? The U.S. Grains Council today launched its 2012 online Annual Report, available now at www.usgcAnnualReport.org.

The online report includes success stories from the year, video highlights, photographs, and market profiles from more than 25 countries and regions. Market profile pages display supply/demand charts, market growth potential and other information viewers may find useful, including highlights from Council programs in each country.

"Since the Council was founded 52 years ago, we have focused continuously on building markets and expanding trade opportunities for U.S. farmers and agribusinesses," said Don Fast, USGC chairman.

"By promoting sound trade policies, building relationships between trading partners and being a reliable third-party resource, the Council and its members have enhanced food security and food choice for countless people around the world. This work is at the heart of our mission of Developing Markets, Enabling Trade and Improving Lives. The Council's global staff live and breathe it - and it makes us proud to witness their efforts."

An exclusive feature of the online report provides access to downloadable spread sheets containing supply/demand data for more than 25 countries and regions that are provided on the individual market profile pages.

The online report is available on its own website, www.usgcAnnualReport.org, while the printed publication will be mailed to Council members. A downloadable form of the printed publication is also available online.

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The U.S. Grains Council is a private, non-profit partnership of farmers and agribusinesses committed to building and expanding international markets for U.S. barley, corn, grain sorghum and their products. The Council is headquartered in Washington, D.C., and has 10 international offices that oversee programs in more than 50 countries. Financial support from our private industry members, including state checkoffs, agribusinesses, state entities and others, triggers federal matching funds from the USDA resulting in a combined program value of more than $28.3 million.

The U.S. Grains Council does not discriminate on the basis of race, color, national origin, sex, religion, age, disability, political beliefs, sexual orientation or marital/family status. Persons with disabilities, who require alternative means for communication of program information, should contact the U.S. Grains Council.

 

Highlights from the Council's Online News Room

News Room:
- USGC's Analysis of USDA's Prospective Planting and Grain Stocks Reports
- Bryan Lohmar Named U.S. Grains Council China Director
Chart of the Week: U.S. Corn Area Planting and Yield
Word from the Ground:
- Council Activities Grow DDGS Demand in Saudi Arabia
- New Buyers Emerge for Brazilian Corn
- An Order for Italian Take-Out
Council News:
- USGC Membership Services Gets Revamped
Council Cast
- Thomas Dorr Audio on China Director
- Wendell Shauman Audio on China Mission


USGC's Analysis of USDA's Prospective Planting and Grain Stocks Reports
Get the U.S. Grains Council's analysis and perspective on USDA's annual publications, Prospective Planting and Grain Stocks. For the full report, CLICK HERE.

Bryan Lohmar Named U.S. Grains Council China Director
The Council is pleased to announce the appointment of Dr. Bryan Lohmar as its new director in China. In this capacity, Lohmar will oversee the Council's programs in the country while maintaining and fostering key relationships with Chinese policy officials. READ MORE

Chart of the Week: U.S. Corn Area Planting and Yield
According to the recently released USDA reports, U.S. producers are projected to plant a record 95.9 million acres (38.81 million hectares) of corn in 2012 - the highest corn planted area since 1937. More factoids on the 2012 planting season are available here. READ MORE

Word from the Ground: Council Activities Grow DDGS Demand in Saudi Arabia
In a country whose economy is largely dependent on oil exports, the ethanol industry (and related co-products) is often maligned and a large target of contention and discomfort within Saudi Arabia. READ MORE

Word from the Ground: New Buyers Emerge for Brazilian Corn
We are seeing major changes taking place in buyers of Brazilian corn. The biggest surprise is Taiwan, which leads this period, purchasing almost 250,000 metric tons (9.8 million bushels) of corn. READ MORE

Word from the Ground: An Order for Italian Take-Out
The Council's Japan office participated in the Italian Cuisine Show held last week in Tokyo. More than 3,000 Italian chefs and restaurateurs were on-site to showcase their specialty dishes that featured corn flour as the star ingredient. READ MORE

Council News: USGC Membership Services Gets Revamped
To meet the evolving and expanding demands of our membership, the Council is excited to announce Lyndsey Erb-Sharkey's position with the Council has been reclassified and re-titled to manager of membership. READ MORE

Council Cast:
Listen here to USGC President and CEO, Thomas Dorr on the new China Director
Listen here to commentary by Wendell Shauman, USGC Chairman, on his recent mission to China

COUNCIL ACTIVITY CALENDAR
April 9 - 20: The Council, in collaboration with the Sino-U.S. Dairy Management Training Center, will host a corn silage demonstration program in China to expand the demand for feed grains and co-products in the Chinese dairy industry. Two USGC consultants will conduct on-farm consultations and short-course training sessions for local growers to learn about corn silage techniques and the benefits of incorporating U.S. DDGS in livestock rations. For more information, contact Kyle Cromer, USGC international operations coordinator, at kcromer@grains.org

WASHINGTON, D.C., April 2, 2012 - The U.S. Grains Council is pleased to announce the appointment of Dr. Bryan Lohmar as its new director in China. In this capacity, Lohmar will oversee the Council's programs in the country while maintaining and fostering key relationships with Chinese policy officials. Lohmar comes with a wealth of industry knowledge and experience having most recently served a three-year stint as the director of economic research for Bunge CHINA in Shanghai. Prior to that, he was an economist for USDA's Economic Research Service, where he focused on a wide range of agricultural production and trade topics, many pertaining to China.

"Mr. Lohmar's background will be a tremendous benefit to the Council's work in China," said Dr. Wendell Shauman, USGC chairman. "We are happy to have him with us as his business leadership and trade promotion experience will be incredibly valuable to the Council's work in this important market."

Lohmar is graduate of the University of California, Davis, holding a Ph.D. in agricultural economics. He has authored numerous papers on China commodity supply and demand trends, and China's own natural resource challenges and future needs.

"The Council has been active in the China market since 1982. Persistent, on-ground engagement in China created a foundation of credibility and trust that enables the Council to engage with the highest levels of Chinese ministries, research institutes and end-users on the value of trade as a solution to food security," said Thomas C. Dorr, USGC president and CEO. "This level of engagement, combined with China's growing middle-class economy has made this market into one of the newest demand drivers for U.S. corn and co-products. Lohmar's direction and leadership will be essential to continuing our market presence in China."

Lohmar will begin working for the Council in late April.

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Corn Quality Report Explores 2011 U.S. Crop
The 2011 U.S. corn crop entered the global market with a good test weight, low stress cracks and good moisture readings, according to the 2011 U.S. Corn Quality Harvest Report, the first national corn quality report of its kind commissioned by the U.S. Grains Council.

Results in the study were drawn from 474 yellow commodity corn samples taken across 12 top corn producing U.S. states representing 98 percent of 2010 U.S. corn exports.

"Many key questions we are asked every year surround the quality of the U.S. corn crop," said the Council's Erick Erickson, director of programs and planning. "With this initial report, we aim to objectively provide that information. As reports are completed in future years, we'll have an excellent history of the quality of U.S. corn as it enters the merchandising channel."

Samples for the study were collected by country elevators in each participating state. Samples were sent directly to the Illinois Crop Improvement Association Identity Preserved Grain Laboratory in Champaign, Ill., for analysis following U.S. Department of Agriculture standards.

The study compiled the results on an aggregate basis, covering all 12 states, but also broke them out into three composite export catchment areas, the Gulf (Mississippi Gulf shipments), Pacific Northwest and Southern Rail (rail shipments to Mexico).

"The catchment areas can help buyers who ship out of certain points to better understand the quality of the corn entering merchandising channels that generally ship to those areas," Erickson said. 

On an aggregate basis, the report shows a good test weight crop in 2011 - 58.1 pounds per bushel (74.8 kg/hl). 

Moisture samples taken at grain elevators averaged 15.6 percent and had low variability, which implies that the corn dried down mostly in the field , helping improve storeability and creating fewer stressed kernels due to less equipment-based drying.

The crop also showed low stress cracks and low levels of broken corn and foreign matter (BCFM). Low figures in both of these areas indicate the possibility of reduced rates of breakage as corn is handled.

"Study results show that despite challenging growing conditions experienced in several corn growing regions, farmers in the United States produced a high-quality crop overall," Erickson said.

Other characteristics were also examined, including protein, starch and oil content, and are shown in the second chart.

USGC President and CEO Thomas C. Dorr discusses the Corn Quality Harvest Report on Council Cast. Click here to listen.
Find the report on the Council's website by clicking here.

Competing for Algeria's Feed Grain Market
Algeria imported 3.5 million metric tons of feed grains last year, with corn reaching 126 million bushels and barley topping 17.7 million bushels. Algeria's corn sales were dominated by Argentina, Brazil, Ukraine, France and Romania, and barley sales by France, Finland, the U.K. and Bulgaria. According to Cary Sifferath, U.S. Grains Council regional director, the U.S. market share is estimated at 2 percent overall.

"Much of the growth in Algeria's market is the result of the Arab Spring, which allowed Algerian importers to take advantage of some shipments originally destined for Libya. That gave Algeria's poultry producers access to lower-cost corn and soybean meal, which led to better producer profits and expanded poultry production," he said.

"The market is growing, but we need to work much harder to increase the U.S. market share in 2012," Sifferath added.

"There's a growing preference for Argentine "red" corn, and Black Sea corn often provides a cost advantage to its suppliers. This year, we want to focus on removing Algeria's high import duty and Value-added tax on distiller's grains in order to promote combination shipments of U.S. corn and co-products."

Word from the Ground:

Building an Industry with New Standards
By Clover Chang, USGC Director in Taiwan

Taiwan's Council of Agriculture is under pressure from feed millers and poultry producers to establish national mycotoxin standards for grains and feedstuffs. At the U.S. Grains Council Taiwan office, we are working to promote U.S. standards as a benchmark in setting national quality control systems in Taiwan. We recognize that these new standards have to be adaptable to encourage producers, even at the most local level, to embrace new industry guidelines.

This month the Council's Taiwan office worked with Taiwan's COA and feed sector representatives to hold a mycotoxin standard policy meeting. The Council of Agriculture plans to publish a technical bulletin on mycotoxins by July, conduct seminars about the standard for feed millers and livestock producers and invite a U.S. or Japanese consultant to share his or her expertise on mycotoxin prevention and control at these seminars. 

This meeting succeeded in involving a round-table of key industry leaders from the academic community and government agencies.

COUNCIL ACTIVITY CALENDAR

March 20 - 30: The Council will host a number of buyer seminars and training workshops at the Shanghai JCI's Raw Feed Materials Market conference in China. Council consultants will be on-hand to address buyer needs and share their expertise in risk management and freight solutions. Buyers of U.S. corn and co-products, representatives from major feed companies and regional grain traders will have the opportunity to learn about the quality and supply of U.S. grain products. For more information, contact Kyle Cromer, USGC international operations coordinator for Asia, at kcromer@grains.org.

Do you find the information in Global Update useful? If so, be sure to pass it on to your friends and colleagues who might benefit from learning more about the U.S. Grains Council's programs to build demand for U.S. grains and increase market access around the world. If they would like to receive Global Update directly, encourage them to contact Marri Carrow at mcarrow@grains.org with their name, company and e-mail to subscribe.

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WASHINGTON, D.C., February 28, 2012 ?  The U.S. Grains Council, which develops export markets for U.S. barley, corn, sorghum and related products, has launched a significantly enhanced website at grains.org.

The website, a component of the Council's branding and communications initiative, presents the latest news and data relating to the U.S. and global grain trade. The site includes charts that present current FOB reference prices and market spreads for several commodities at port, as well as top U.S. export customers and additional information that is helpful for foreign buyers and those monitoring grain markets and exports.

"The U.S. Grains Council gathers a significant amount of information every week, and this new website helps us present that information to members and interested parties in a more timely and more organized fashion," said Don Fast, USGC vice chairman and barley farmer from Glasgow, Mont. "We also highlight key issues and policy positions taken by the Council to make it clear what the Council and its members believe ?  that open, liberalized trade of all goods and services is vital to the prosperity of the world economy."

Included on the site are details from each of the Council's 10 foreign offices, as well as a market overview, supply and demand information and market growth potential for more than 25 countries.

"News and information is integrated throughout the site and our new Word from the Ground post offers a place for our professional staff and consultants to provide additional insight on pressing issues on a daily basis," said Fast.

A new members-only area will debut later this year. The My USGC member center, formally known as The GRAIN Center, will allow members to renew membership, update information, register for events and download members-only documents from the Council's extensive resource library.

For more information, contact Marri Carrow, USGC manager of communications, at mcarrow@grains.org or 202-789-0789.

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The U.S. Grains Council is a private, non-profit partnership of farmers and agribusinesses committed to building and expanding international markets for U.S. barley, corn, grain sorghum and their products. The Council is headquartered in Washington, D.C., and has 10 international offices that oversee programs in more than 50 countries. Financial support from our private industry members, including state checkoffs, agribusinesses, state entities and others, triggers federal matching funds from the USDA resulting in a combined program value of more than $28.3 million.

Rapid Rise of Asian Middle Class Likely To Revamp Global Food Systems:
U.S. Grains Council Previews A Changing Vision of World Food Demands in 2040

WASHINGTON, D.C., February 24, 2012 – The sophisticated food demands of newly affluent consumers in China and other developing nations are likely to cause major change in U.S. farming and food production, Asian food policy and world trade, according to Food 2040, a new study of emerging food trends in Asia by the U.S. Grains Council (USGC).

USGC President and Chief Executive Officer Thomas C. Dorr presented a preview of Food 2040 today at the U.S. Department of Agriculture's annual Agricultural Outlook Forum.

"Growing affluence in China could change people's diets and the global food system. Consumers will expect more choice, quality, convenience and safety in their food purchases," Dorr said.

Food 2040 also reveals important implications for agricultural trade policy between the United States and Asian nations. "We are seeing China become more open to acceptance of new technology, such as agricultural biotechnology, which can help meet the needs of the Asian middle class in a sustainable manner through trade," Dorr said.

U.S. attitudes about feeding the world are likely to change too. "Many of the agribusinesses and agricultural organizations that comprise the U.S. Grains Council are starting to review possibilities for meeting the needs and capturing the economic value that ascendency of the Asian middle class represents," said USGC Chairman Dr. Wendell Shauman, an Illinois corn farmer and member of the Illinois Corn Marketing Board. "Working together with trading partners around the world to understand emerging trends, we can use a convergence of science, technology and policy reform to meet changing food demands and capture the economic potential of new Asian consumers."

The U.S. Department of Agriculture's Foreign Agricultural Service (FAS) is assisting the Council with the launch of Food 2040 in Japan. "Japan and the United States are longstanding trading partners, and we understand each other well. Now, our two nations must learn more about China and develop an understanding of how this emerging mega-market will influence the global food system and our two nations' participation in it," said Geoffrey Wiggin, USDA's FAS Minister-Counselor in Tokyo.

Food 2040 outlines the following possibilities for significant change in the global food system.

GLOBAL FOOD SYSTEMS RESTRUCTURED TO SUIT CHINA'S MIDDLE CLASS
China is the world's fastest growing economy, and because of the sheer size of its population, Chinese demand will reshape the global food industry over the next 20 years. Although India is expected to surpass China in population numbers, China is likely to remain the dominant economy within the timeframe of Food 2040.

CHINA AS WORLD BIOSCIENCE LEADER
Agricultural biotechnology may no longer be dominated by U.S. technology. China is on a path to global bioscience leadership, driven by major central government investments to meet its own food needs and a desire to be an export leader.

NEW ASIAN SYSTEM OF FOOD SAFETY
Asia does not yet have a well-developed food safety and inspection system, but this could change through use of 21st-century nanotechnology, biotechnology, information technology and logistics systems.

FOOD AS A SERVICE
By 2040, 70 percent of consumer food expenditures in Japan will go toward foods prepared outside the home, and China is likely to adopt Japan's rapid acceptance of foods prepared outside the home.

FOOD AS A SERVICE
Food 2040 envisions a proliferation of specialty markets and product differentiation in Asia. This is not a new concept for the United States, where the average U.S. supermarket carries almost 40,000 items, but when four billion people around the world with very different cultures and diets begin to enjoy that degree of consumer choice it will significantly affect global food production, processing and distribution systems.

The complete Food 2040 study is available at www.grains.org. The U.S. Grains Council is a private, nonprofit organization dedicated to building export markets for barley, corn, sorghum and their products. The Council is headquartered in Washington, D.C., with 10 international offices and active market development programs in more than 50 countries. Financial support from the Council's private industry members, including state checkoffs, agribusinesses, state entities and others, triggers federal matching funds from the government and support from cooperating groups in other countries, producing an annual market development program valued at more than $28.3 million.

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