DENVER — Global demand for feed grains is obviously a driver for higher corn prices, but according to a recent study, more than 10 percent of the average annual price of corn can be attributed to exports of U.S. beef and pork.
The U.S. Meat Export Federation (USMEF) places the value of these exports at 41 cents per bushel. In other words, during the 2020 marketing year, the $5.8 billion in U.S. red meat exports helped drive the average annual price of corn from around $3.10 per bushel to more than $3.50 per bushel, or an additional $1.87 billion back to the corn industry.
When factoring in the livestock industry’s use of distiller’s grains or DDGs at an annual price of almost $155 per ton, beef and pork exports generate $468 million more in market value to the ethanol industry.
Data is not yet available for 2021, but with major increases in beef and pork exports around the world, the domestic livestock industry is sure to play a key role in the recent runup in corn prices for American farmers.
(SOURCE: All Ag News)