U.S. Grains Council released new trade information that indicates Tunisia is on track to become the largest international export market for U.S. corn oil for the second year in a row.
In the past, Turkey and Saudi Arabia have been the largest export markets for U.S. corn oil, but biotechnology constraints are now holding them back.
The U.S. Grains Council says that much of the exports to Tunisia are refined there and then sold to Libya. Similarly, refined corn oil is often exported to Tunisia and then sold to Libya. Additionally, Ukrainian sunflower oil has been the cheapest vegetable oil option in Tunisia, but Libya favors corn oil, giving U.S. corn oil an advantage.
Roughly 70% of the corn oil exported to Tunisia ends up in Libya, according to the grains council, even though Libya does do some direct buying. Corn oil has been also been a growing market in Egypt, but has not surpassed either Saudi Arabia or Tunisia.
The graph data shows exports for both crude and refined oil.
(Image courtesy U.S. Grains Council)
The Korean Free Trade Agreement is also providing benefits for U.S. Barley producers. The agreement, which went into effect earlier this year, eliminated selected tariffs.
Byong Ryol Min, U.S. Grains Council Director in Korea, reported that more than a dozen local buyers have registered for the allocation of new duty-free tariff rate quotas of 2,500 metric tons of barley for 2012.
According to the agreement, duty-free volumes will increase 2% each year, with tariffs eliminated by 2026.