The corn market, along with most other commodity and financial markets, was negatively affected by the uncertainty created by the natural disaster in Japan and ongoing conflicts in North Africa and the Middle East. The Japanese situation is especially important for corn because Japan is the largest importer of U.S. corn, said a University of Illinois economist.
“Japan accounted for 33% of U.S. corn exports in 2008-09 and 30% in 2009-10, typically importing about as much U.S. corn as the next two largest importers, Mexico and South Korea, combined,” said Darrel Good.
The damage from the recent earthquake and tsunami has the potential to reduce Japanese feed demand and import capabilities in the short run. Most experts believe that long-term disruptions will be minimal and that Japan will continue to import large quantities of U.S. corn, he said.
New export sales of U.S. corn were large in six of the seven weeks ended March 10, averaging 41.6 million bushels per week.… Continue readingRead More »