October 1, 2007

USGC: Brazil's record high corn output to increase global trade competition

Brazil set a record in August, exporting 1.3 million tonnes (51.2 million bushels) of corn, according to US Grains Council consultant Alfredo Navarro.

Brazilian traders are expecting the country to export approximately 10 million tonnes (393.7 million bushels) of corn in 2007.

Recent buyers include Germany and Spain, whose supplier options are limited by European Union policies on biotechnology, as well as Japan.

The high export volume has kept the prices at very high levels compared with last year, said Navarro.

With attractive prices and more cash available, Navarro said Brazil is expecting another record corn crop in 2007/08 if the weather helps.

He noted that Brazilian corn producers have pre-sold some of the 2007/08 crop for the first time, allowing them to purchase fertilizer and seeds without high interest loans, potentially increasing how much corn are planted.

Brazil produced 51 million tonnes (2 billion bushels) of corn and exported 9.5 million tonnes (374 million bushels) in 2006/07 according to USDA figures.

The US Grains Council will continue to monitor the Brazilian corn market and evaluate its potential impact on US grain sales.