2020 Fall Farm Outlook

PAGE 10 2020 Logan County Farm Outlook LINCOLN DAILY NEWS October 28, 2020 Corn has also been in high demand. According to official export reports, “since September 1, corn shipments to China totaled 1.1 million tons, ahead of Mexico at 1.0 million tons, as the largest destination.” The USDA reports that Ukraine has been China’s primary supplier of corn since 2014, and imports of Ukrainian corn to China are at their highest level in six years. However, China’s demand for U.S. corn is also strong, meaning Ukraine is dealing with increased competition from the United States, and will likely continue to face said competition. Grain will likely continue to find support due to strong export demand. The U.S. dollar may also continue to weaken, which is attractive to foreign buyers. Slow planting progress in other countries, along with higher import taxes, made early sellers nervous. For these reasons, exports will be closely watched the next few weeks if the trend continues. If corn and soybean demand continues to grow higher in China, U.S. prices will be well supported on any setback. Even with per- bushel freight costs, U.S. prices are likely to still be quite low for Chinese end users. Overall, it looks like grain prices may still rise before the year is over, depending on whether or not demand raises with it. Regardless of what the final price will be, China will continue to be one of our larger customers into next year. [Derek Hurley] Sources: China makes its largest ever purchase of U.S. corn China’s imports, exports surge as global economy reopens Soybeans firm for third day on Chinese demand Grain: World Markets and Trade