January 4, 2007

Brazilian corn exports may hit 5 million tonnes in 2007

Brazil's corn export could equal the 5-million tonnes exported in 2004, according to analysts.

The country has already booked 1 million tonnes for shipment in 2007, with Iran being a major market.

Brazil plans to export its second "safrinha" corn crop between August and September. Firm prices encouraged Brazilian farmers to increase the "safrinha" corn area to 3.7 million hectares, from 3.2 million in 2006. The crop would hit 11.6 million tonnes or more if the weather remains favourable, Agencia Rural consultancy said in a report.

Brazil's largest "safrinha" was in 2003 when the country harvested 12.8 million tonnes.

The main summer crop would be shipped in March.

Brazil's 2007 corn market would be favoured by higher prices stemming from international demand for fuel ethanol and domestically by demand for feed after a difficult 2006 for poultry and hog farming owing to bird flu outbreaks. Embargoes were also put on Brazilian pork and beef following cases of foot-and-mouth disease in Mato Grosso do Sul.