July 4, 2024
Brazilian corn exports surge in July as soybean shipments decline
Brazilian corn exports for July are estimated at 3.4 million metric tonnes, marking a significant rise of 2.4 million tonnes compared to June, according to grains traders lobby Anec, Reuters reported.
The increase comes as the shipment season gains momentum and soybean exports slow down.
If confirmed, the July corn exports would still be around 2.5 million tonnes below the levels of July last year, when Brazil harvested a record second-corn crop and saw higher demand from China.
Despite the decrease, China remains Brazil's top destination for corn exports this year through June, accounting for 20% of all shipments, according to Anec.
Brazil's second corn, which is planted after soybeans are harvested on the same land, is primarily exported in the second half of the year, competing with supplies from the US.
Consultancy Agroconsult recently estimated Brazil's second corn production at 100.5 million tonnes and exports at about 42 million tonnes. After surveying local corn fields, Agroconsult noted that lower projected exports this season reflect weaker demand from China and competition from suppliers like Argentina and Ukraine.
Anec's projection is based on shipping schedules. In its latest report, Anec suggested that corn shipments could reach 4.3 million metric tonnes in July, depending on demand.
For soybeans, Anec estimated that shipments will increase by almost 900,000 tonnes in July compared to the same month last year. However, this represents a sharp decline from June, as corn takes over the shipping space at Brazil's busy and often congested ports.
Soybean shipments for July are estimated at around 9.5 million tonnes, compared to 13.9 million tonnes in June, which set a record for the sixth month of the year and the highest monthly level since May of the previous year.
China was the destination for 75% of Brazilian soybean exports this year through June, according to Anec.
- Reuters
