Corn Export Forecast Starts its Decline

WASHINGTON - Mar 8-01 - STAT -- The USDA boosted its estimate of this year's corn carry out by 50 million bushels to 1,941 million because of disappointing export sales.

Projected U.S. corn exports are reduced because some importers, especially Japan, are expected to minimize purchases of varieties of corn not approved for some, or all, uses. This is a specific result of the StarLink corn controversy and the unwillingness of Japan to allow any imports of the corn.

Export sales to Europe are also being impacted by the disease problems sweeping the region. The initial ban on use of meat and bone meal in livestock feed was seen as supportive for North American exports of feed peas, soybean and coarse grains.

But consumers reacted badly to the discovery of BSE infected cattle in areas which had been free of the disease. They reduced beef consumption levels.

However, recent discovery of animals infected with foot and mouth disease in the England and Ireland has resulted in control measures which are having a material impact on the amount of animal feed which can be consumed in Europe.

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