U.S. could become net corn importer

CHICAGO – The United States could shift from the world’s largest exporter of corn to a net importer as its burgeoning ethanol industry continues to expand, but in the meantime sales abroad are poised to rise as farmers boost acreage to cash in on decade-high prices.

“We will certainly have the opportunity to export at least as much in 07/08 as we appear to be doing in 06-07,” said Robert Kohl-meyer, president emeritus of World Perspectives, a group of consultants and analysts based in Washington.

“Looking ahead, there’s no doubt there’s going to be a demand squeeze on world corn supplies.”

The demand for corn-based ethanol could be so strong that the United States might one day become a net importer of corn, said Jose Rasco, investment strategist at Merrill Lynch.

“If the US becomes a net importer of corn, it could drastically affect the global corn industry,” he said. “Our ability to export corn will probably be diminished by the increased demand domestically from the energy side.”

Reuters