April 7, 2010

Brazilian corn exports in the 2010/11 (Feb/Jan) season could surge as much as 40% to between nine million and 11 million tonnes, up from the 7.8 million tonnes shipped in the 2009/10 season, an industry official said on Tuesday (Apr 6).

The expected increase will result from a large surplus of corn in Brazil due to a large harvest this year, said Felicio Paschoal da Costa Aguiar, head of the National Association of Cereal Exporters.

Brazilian corn output is expected to rise slightly this season to 51.3 million tonnes despite a 9% cut in total planted area, the agriculture ministry says.

Stocks are also plentiful, totalling around 11 million tonnes when the harvest began. Domestic demand is strong and the country is expected to consume around 46 million tonnes this year. "Internal consumption has risen quite a lot. But it won't be sufficient to consume all the surplus," Aguiar said.

"One way or another, we will have to shift this (surplus supply) from here. The government, producers and exporters will have to set prices such that it moves this corn," Aguiar added.

The pace of exports was partly dependent on the government continuing with a programme of subsidies for haulage of corn by road. The state has indicated it intends to do so, according to Aguiar.

Corn exports earned Brazil US$1.2 billion last year. Brazil is also the world's top poultry exporter where corn is used as feed in the industry.