August 29, 2007

EU demand could up Brazil's 2007 corn exports at record 10 million tonnes

Increasing demand from the European Union since July could hike Brazil's corn exports to a record 10 million tonnes this year, according to Reuters report.

Brazilian traders said that figure is more than twice last year's sales of 4 million tonnes and is also higher than the 7.5 million to 8 million tonnes in sales that traders in general had expected in recent months.

Hot and dry weather affecting the grain's plantation in Europe has made Brazil's corn supply to be revised upward, Brazilian crop agency Conab said.

The corn analyst at the government's crop supply agency Conab, Marco Antonio Carvalho, declined to state the exact volume increase as the agency's figures are to be released on September 4.

Carvalho said the bad state of European wheat is also one factor in boosting Brazilian corn.

European buyers also tend to prefer Brazilian corn because it's not genetically modified.

In July, Brazil's corn exports reached a record level of more than 1 million tonnes.

Almost 2 million of the 5.6 million tonnes of corn Brazil had exported since the beginning of the year was directed to the European market and this amount should grow in coming months as countries such as Germany and France emerge as buyers.

Local prices are going up due to high international prices and to the premium paid for the conventional corn. At Paranagua port, prices are at a record, roughly US$200 per tonne (US$5.07 per bushel).