Amazon ports boost Brazil corn exports in 2022/23

With nearly 85% of the harvest completed, the corn market in Brazil has been breaking record after record in the 2022/2023 season. The national output, estimated at 125.7 million tonnes by Conab (National Supply Company), marks an all-time high and record-breaking corn exports through Brazilian ports.

In the first half of this year alone, corn exports yielded $3.35 billion in revenue for Brazilian exporters, nearly rivaling the earnings from coffee exports ($3.6 billion in the first half).

From January to July this year, exports totaled 15.9 million tonnes compared to 10.4 million tonnes in the same period last year – a significant increase of 52.9%.

This year, Brazilian corn exports are projected to surpass those of the United States, the world’s leading exporter. Conab forecasts shipments to reach 50 million tonnes.

Amazonian Ports Boost Brazilian Corn Competitiveness

Data from Reuters reveals that logistics play a crucial role in enhancing the competitiveness of Brazilian corn.

For the third consecutive year, the volume shipped through ports in the Amazon basin is set to outpace that sent through the Port of Santos.

During the first half of the year, roughly 40% of corn exports were handled by ports in Barcarena (PA), Itaqui (MA), Itacoatiara (AM), and Santarém (PA), according to Datamar. This outperformed the 28% exported from Santos. This shift results in an estimated freight cost savings of R$20 per ton.

See below the share of some of the main Brazilian ports in the export of corn in 2023. The data is from DataLiner, a maritime intelligence service by Datamar.

Corn exports by Brazilain Port | 2023 | WTMT

Source: DataLiner (click here to request a demo)

Next Harvest Season Outlook

Analysts predict that the global corn harvest for the 2023/2024 season will see a 6% production increase, 3% consumption growth, and a 6% rise in the cereal’s final stock.

In Brazil, the current scenario of tighter prices and squeezed margins is expected to influence decisions by Brazilian producers for the 2023/2024 season. Itaú BBA anticipates a slight reduction in the planted area for corn in Brazil during the next harvest.

Source: Bruno Blecher for Poder360

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