September 6, 2012

Brazil's record high 2.7 million tonnes corn exported in August will not hamper domestic supply.

Corn exports in August were 81% higher than a year before (1.5 million tonnes) and despite the increase, the average price (US$263/tonne) was lower than in August 2011 US$298.5/tonne.

According to Edilson Guimarães, the Trade Director at the Brazilian Agriculture Ministry, Brazilian corn output is seen reaching 78 million tonnes this year. After domestic consumption (50 million tonnes) and exports (15 million tonnes), the country should end the year with the biggest corn stockpiles to date, of 13 million tonnes.

"There have been rumours that domestic corn prices have gone up due to large exports. However, there are many reasons for the increase, especially the 100 million-tonne loss caused by the drought in the US", the director added.

Guimarães affirmed that the government has adopted measures to try and minimise the losses incurred by poultry and pig farmers, such auctions and the over-the-counter sale of 600,000 tonnes of corn in the South and Northeast.