U.S. corn is facing headwinds as Brazil dominates the market, according to analysts
U.S. corn is feeling the pinch of a more competitive market as countries like Brazil, China, and Mexico all threaten the $90 billion industry.
Domestic demand for feeding livestock and ethanol production has also tapered off recently. A report from Reuters shows as a result, plantings could decline causing already low farm incomes to suffer in the years ahead.
Analysts with Rabobank say they are left wondering where demand for U.S. corn will come from especially as Brazil takes a bigger share of the global market. Right now, USDA is forecasting U.S. corn exports at 53.3 million tons net year, which is nearly two tons behind expectations for Brazil.