February 2, 2009

Brazil's corn exports are expected to more than double in January from a year ago, helped by the depreciating Brazilian real, according to market sources on Thursday (Jan 29).

Brazil has shipped 750,000 tonnes of corn as of January 27, up from 392,000 tonnes during the entire January in 2008, a broker said.

Brazil should finish January with exports of between 900,000 and 1 million tonnes, said a Parana-based broker.

Corn exports from Brazil quickened in late 2008, shipping 1.3 million tonnes in December alone - the highest for any month last year. From Jan-Nov 2008, Brazil exported only 5 million tonnes of corn.

More than 700,000 tonnes of corn are scheduled to be exported between late January and mid-February, brokers said.

"The dollar is the main boost for the market now. The challenge now is to take advantage of the currency's competitiveness and increase market share," said analyst Leonardo Sologuren, at the Celeres consultancy.

The Brazilian real has dropped nearly 32 percent against the US dollar since August.

Restrictions imposed on Argentine corn exports could also boost Brazilian sales in the coming months.

Brazil is expected to ship 8 million tonnes of corn this year, according to the Agriculture Ministry.