April 2, 2004

Brazil Exports Over 1 Million MT Of Wheat Since December

Brazil remains the world's largest wheat importer but has actually exported over one million metric tons of wheat since the start of December, the Agriculture Ministry said late Wednesday.
 
The main destinations were Africa, especially Morocco, and northern Europe, according to Jose Maria dos Anjos, a ministry director.
 
Brazilian cooperatives chose to export to ease the pressure of a record 5.8 million-ton crop on the local market.
 
It is cheaper for companies in the south, where most wheat is produced, to export than to sell it to the northeast because of high domestic freight costs and internal taxes, said Anjos.
 
This is the first year Brazil has exported wheat in any significant volume. Sales are expected to fall off from April onward as supplies tighten and soy and soft commodity crops take over the ports.
 
Brazil will still import half of its 10-million ton wheat requirement this year.
 
Corn shipments were also brisk in the first quarter of 2004. Exports totaled a record 1.942 million tons in the period, up from 374,800 tons last year and 1.1 million tons in 2002.