As per the latest update from United States Department of Agriculture (USDA), Colombian corn production is forecast to remain unchanged at 1.6 million MT in MY 2019/20 as weather conditions are expected to be favorable for crop development, but area planted continues to marginally decrease as a result of low grower prices and high production costs. The reduction in area has been partly compensated by improving yields given good climate and advances in technology. Colombian corn production is divided into two categories. First, there are medium and large scale industrial farms applying the use of improved seed, preventative chemical pest controls, and modern machinery for planting and harvesting. The other category is comprised of small landholdings managed by, typically, one owner who may grow multiple crops within the operation. In 2018, industrial corn farming grew to reach about 55 percent of the total corn area harvested. Colombia's average yield is 3.7 tons per hectare; however, according to the Colombian Grains Association (FENALCE), the country can achieve a potential corn yield of ten tons per hectare.

In MY 2019/20, total corn imports are forecast to reach 5.7 million MT with U.S. corn surging to 5.6 million MT as it remains price competitive due to trade preferences under the CTPA and geographical advantages compared to competitors in South America. Corn imports have shown an upward trend as feed demand continues to grow while domestic corn production remains flat. Since the implementation of the CTPA in 2012, U.S. market share has increased to account for more than 99 percent of the Colombian corn import market. However, in 2018, Argentine corn became attractive for some importers due to the CAN price band system (APBS) that gave preferential duty treatments to Mercosur countries. The U.S. market share decreased to 97.3 percent in 2018. Despite this decrease in market share, the volume of U.S. corn imported reached historically high levels of 5.5 million MT. This result reflects the increasing demand by the feed industry that preferred to source corn instead of other grain substitutes, such as sorghum and wheat

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