August 30, 2007

Brazil's July corn exports hit record of more than 1 million tonnes

Brazil's July corn exports set an all-time high reaching 1,039 million tonnes or 165.2 percent increase worth US$172.1, up by 234.65 percent compared to the same period a year ago.

The growth was due to EU's surging demand for corn and the region's preference for conventional corn. The US -- Brazil's main rival in the global market -- produces and exports more than 70 percent of transgenic corn.

Brazil's corn export growth is boosted by the strong foreign demand and a surplus in domestic supply of the grain. The level of sales abroad will also be the basis of dictating the prices in the local market.

However, shipments are seen to reduce by the end of the year due to US corn in September.

On the other hand, Latin American analyst Tendencias predicts average corn prices in 2007 to increase by 13.8 percent in the domestic market and 40.6 percent in the foreign market, in comparison to 2006.