Brazil sends corn to the US for the first time in 2019

Brazil sent 60,000 tons of corn to the United States at the end of September, according to data from Refinitiv. The export destination is quite unusual as the United States is the largest producer and exporter of cereals.

According to ship scheduling information, the corn was exported by Cargill.

NovaAgri SA, another Brazilian grain trader, said in a statement that it also sent 60,000 tons of corn to the US-based Smithfield Foods slaughterhouse on September 3 from the Port of Santos.

Cargonave’s shipping data shows that a ship called King Milo will carry about 52,400 tons of corn to the United States on October 17 from the Port of Itacoatiara.

So far in 2019, Brazilian corn exports totaled 27.46m tons, surpassing all the volume sold abroad last year.

In June, market sources said Brazil was selling corn to the United States, with shipments starting in September, a measure that underpins the ability of Brazilian sellers to access new markets amid a record crop.

Sources said the US demand for corn in Brazil was prompted by fears of crop failure in North America as US farmers dealt with climate issues at the beginning of the planting season.

Over a period of 2019, these fears drove Chicago corn prices to US$4.54 per bushel. Currently, corn is being negotiated at around US$3.70.

Cargill’s ship was loaded at the CGG (Cantagalo General Grains) terminal in the Port of Itaqui, which is closer to the United States than Santos.

Agrostat data, which is compiled by the Ministry of Agriculture, do not yet show Cargill and NovaAgri corn shipments to the US.

The Brazilian government predicts that corn exports will grow 47% this season to 35m tons.

“It’s just the first, there are still others to come,” Frederico Humberg, AgriBrasil’s chief executive, told Reuters of the prospect of more corn exports this year.

Record Brazilian overseas sales expectations reflect a favorable exchange rate and an abundant harvest of nearly 100m tons, traders say.

According to government data, Brazil is meeting the demand from traditional US corn buyers, including Mexico and Colombia, who have already bought more than 500,000 tons from January to August.

Source: Reuters

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