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Study: 11% of corn price is derived from red meat exports

A study conducted for the U.S. Meat Export Federation shows eleven percent of the price of corn this year will be derived from beef and pork exports.

“If you look at the volume of exports this year and take the premium that that’s bringing to the price of corn, it’s about 39 cents on a $3.53 bushel of corn,” says Dave Juday with consulting firm World Perspectives.

That amounts to five-point-seven billion dollars to the U.S. corn sector. And the study projects that, over the next ten years, that number will grow about ten percent more than what USDA projected in 2016.

“That adds up to about 450 million additional bushels of corn that will be used over the next decade by red meat exports, on top of what already was the trendline.”

Beef and pork exports also have a direct impact on the utilization and value of DDGS, the study notes. Overall, the value of DDGS sold for feed to livestock represents about 23 percent of the value of ethanol per bushel of corn.

For more on the study results, click here.