Brazil’s corn exports down 50% in 2021

The export season for corn from Brazil is starting this month, with around 40 ships scheduled for shipment at ports, but the number does not reach half of the total scheduled for the same period last year, under the impact of a strong drop in harvest, according to market participants and maritime agency data.

In 2020, Brazil exported around 33 million tons, and projections were for stability without taking into account climatic problems such as drought and frost. But now there is talk of 20 million tons in 2021, with many participants who would normally ship abroad now directing sales to the domestic market after “washout” operations were registered.

See the chart below for a history of Brazilian corn exports since 2019:

Brazilian Corn Exports (HS 1005) | Jan 2019 to May 2021 | WTMT

Graph source: DataLiner  (To request a DataLiner demo click here)

“There was a lot (of washout), a lot of people did washout for sale in the domestic market,” said the CEO and founder of trading company AgriBrasil, Frederico Humberg.

He estimated that after the impact of drought and frost, the corn crop in Brazil will be reduced to 87 million tons, with only 20 million going for export. Last year, the harvest exceeded 100 million tons and it could have been a lot bigger in 2021 were it not for the bad weather.

In years of greater supply, Brazil appears as the second global corn exporter, behind only the United States, despite having a strong meat industry that uses up most of the local production.

Source: Money Times

To read the full original article go to the link: Brazilian corn exports to halve in July – Money Times

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