Market News & Headlines >> South American Corn Exports Building

Indications are that U.S. corn will continue to face strong competition from South America in the export market in coming weeks.

A top official in Argentina’s government said on Monday that the government would soon authorize additional exports of nearly 7 million metric tons of corn during the 2014/15 market year, in addition to 11.5 million tons previously authorized.

"We are analyzing along with the Minister (of Economy, Axel Kicillof) a new authorization. We are finishing up the work," Commerce Secretary Augusto Costa told Reuters News Service. Argentina's government restricts corn exports to ensure domestic supply and avoid increases in food prices.

USDA currently forecasts Argentina’s 2014/15 corn exports (March-February) at 15.5 million tons on production of 25.0 million tons, down from exports 17.10 million tons on production of 26.0 million tons in 2013/14.

Meanwhile, in its monthly supply/demand update last Friday, USDA raised its estimate of Brazil’s 2014/15 corn crop by 1 million tons to 82 million and raised projected Brazilian corn exports by 2.5 million tons to 26.5 million.