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Agricultural News

OSU's Kim Anderson says South American Countries are Competing in the Export Markets

Thu, 14 Nov 2019 18:20:12 CST

OSU's Kim Anderson says South American Countries are Competing in the Export Markets This week on SUNUP - Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson visits with host Dave Deken to discuss Brazil's market encroachment and other news in the commodity markets.   

"If you look at the three out of the last four years, Brazil has had a record corn crop," Anderson said. "And that third year, that wasn't a record, it was a near record."    

Anderson says if you back to the early 2000s, Brazil was exporting 0% of the worlds corn exports. However, this year they are exporting 22% of the worlds corn exports. In Argentina, in the same time frame, went from 2% to 20%. So, South American countries are coming in and taking U.S. corn exports, he added.    

"U.S. exports in that 20-year period, has went from 65% down to 29%," Anderson said. "We have seen this before we saw it with Brazil and soybeans. If you go back to the late 1970s, Brazil started their soybean production. Japan and China started going to Brazil instead of the U.S. to get their soybeans."   

He says Brazilian soybean exports surpassed U.S. exports four years ago. And now they are exporting 36% soybeans into the world export market than the U.S.    

"In the Black Sea Region, in the last 15 to 20 years again," Anderson said. "Ukraine, Russia and Kazakhstan they export 37% of the worlds wheat exports. And you go back 20 0r 30 years, they were exporting near zero. In the 1970s and 80s they were actually importing wheat."    

Economic growth in these countries may be to blame for them taking over some the export markets, he said. In Argentina, took their export tax off of their agricultural products. At one point is was as high as a 35% tax on wheat, corn and soybean exports out of Argentina.

This week on SUNUP, Kris Hiney starts the show with information to help horse owners prepare their horses for winter.

- Then, Derrell Peel says boxed beef demand is rising sharply over seasonal norms.

- In Cow-Calf Corner, Glenn Selk explains why it is important to ensure calving facilities are ready for calving season.

- Jeff Robe has information about OQBN program and how sales are going this fall.

- In the Mesonet weather report, Wes Lee shows us how cold the state got when the front moved through this week. Gary McManus says parts of Oklahoma have seen below normal rainfall, but rain could be on the way next week.

- Kim Anderson says South American countries are competing in the export markets.

- Finally, in Food Whys, Daren Scott explains the origins of coffee.

Join us for SUNUP:
Saturday at 7:30 a.m.
Sunday at 6 a.m. on OETA-TV



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