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High Commodity Prices Not Expected to Affect Corn, Wheat, Rice Consumption

04 April 2012
USDA Foreign Agricultural Service

ECUADOR - Higher international commodity prices are not expected to have a significant effect on consumption of wheat, corn, and rice in Ecuador; the baking industry is dependent upon imported wheat while the animal sector depends on imports of corn.

Wheat production in Ecuador is expected to remain around 9,000 MT again this year, despite Ecuadorian government incentives to substitute imports of wheat. Adoption of newly developed wheat varieties is currently delayed.

Domestic production levels are still insignificant in comparison to current demand. In Market Year (MY) 2011/12 (July 2011-June 2012), imports are estimated to decrease to 545,000 MT in response to slightly lower domestic demand. The market share for sourcing countries returned to a predictable scenario with Canada and the United States as the major exporters in Market Year 2011/12.

Ecuador uses the US dollar as its currency which tends to benefit imports from the United States due to the dollar’s current depreciation against other currencies.

Corn production is expected to increase by at least 20 per cent in MY2011/2012 (May 2011-April 2012) due to more favorable weather conditions.

Despite higher commodity prices in 2012, annual consumption is expected to remain stable at around 1.35 million MT.

Imported corn is used mainly by the feed meal compound industry and related industries: poultry, eggs, and pork. Post projects that corn imports will increase to above 550,000 MT in MY 2011/12 due to a larger amount of import authorizations granted at the end of 2011. The United States and Argentina will be the primary sources of these imports.

Milled rice production will decrease to 624,000 MT in MY 2011/12 (April 2011-March 2012). Although Ecuador has steadily been increasing rice production, bad weather and uncertain market conditions have discouraged an increase in area planted.

Further Reading

- You can view the full report by clicking here.

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