January 24, 2007

Brazil's Amaggi buys corn in advance

Brazil's large traditional trading companies in the soy sector have started buying grains in advance, including corn.

Amaggi, which began to negotiate contracts 60 days ago, has already purchased 200,000 tonnes of corn. Through advance buying, the company plans to more than double its exports of corn this year.

Prompted by the grain prices in Chicago, the company has been buying far more than normal, said the director-superintendent of Amaggi, Waldemir Ival Loto.

In 2006 the company exported between 100,000-150,000 tonnes of corn, all from the company's farm division. The company has been making advanced purchases this year in the in the region of Campo Novo do Parecis, Mato Grosso.

Though farmers have always favoured advance purchase, market conditions were not favourable earlier, pointed out Loto.