Global food supply security improves after US drought

The supply response resulting from last years US drought is becoming apparent as other food producers fill the gap.

Agrimoney reports that the US will regain in 2013-14 its top place among corn exporters lost this season as improved weather results in bumper crops…

But its share of the world market, at 32%, will be – bar last year’s drought-affected result – the lowest on records going back to the 1960s, according to USDA expectations. The average of the previous 10 years was a 52% share of the world corn market. In soybeans, the US will remain in the second place it fell to in 2012-13, forecast to record a share of 37% of global trade, still behind Brazil, and below the 43% average recorded for the previous decade.”

However, last years drought meant large importers of food crops could no longer rely on the US and so sought out alternative supplies.

China, for instance, in soybeans, of which it is the top importer, is adding Argentina to its list of approved sellers. Brazil has already overtaken the US as the major origin for Chinese soybean purchases. In corn, the quest for fresh suppliers has fuelled the rise Ukraine as a force in the grain, with a market share of world exports of 16% forecast for 2013-14, up from a 5.5% share two seasons ago.

With rising supplies from the US, far in excess of domestic demand and competition from other agricultural producers, food buyers stand to benefit from lower food prices and reduced concerns over security of supply.

Related article: How will the US drought affect food prices?

 

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