August 27, 2007

Brazil's 2007 corn exports could reach 10 million tonnes
 

Brazil's corn exports could reach a record 10 million tonnes this year due to rising demand from the EU, traders said on Friday (Aug 24).

The figure is more than twice last year's sales of 4 million tonnes and is also 20 percent higher than what traders expected.

A surge in sales for the European market as hot and dry weather affected that region's grain crop, has made even Brazil's conservative crop supply agency Conab revise upward its projection for Brazilian corn exports.

In July, Brazil exported a record of more than 1 million tonnes of corn and more than 1 million tonnes are designated to be shipped by September.

Almost 2 million tonnes out of the 5.6 million tonnes of corn Brazil exported since the beginning of the year was directed to the European market and this amount should grow in the coming months as countries like Germany and France place their orders.

Local prices are going up due to high international prices and to the premium paid for the conventional corn. The recent depreciation of the national currency, the real, also helped to boost sales.

Brazil's last crop is estimated at a record 50.6 million tonnes, up from 42.5 million tonnes in 2005/06.