Brazil may become the world leader in corn exports in 2023, says Anec

The National Association of Cereal Exporters (Anec) believes that Brazil may surpass the United States as the world’s top corn supplier in 2023, with a total of 50 million tonnes of exports.

The United States, which usually holds the position of the leading global exporter, is expected to export 48.897 million tonnes, according to the Department of Agriculture of the country (USDA).

Fábio Pizzamiglio, director of Efficienza, says that it is necessary to monitor the appreciation of the real against the dollar to predict the activity’s profitability in 2023.

“We are going through a process of appreciation of our currency internationally. This makes our product cheaper, but it can affect the profitability of local producers. This challenge must be considered, especially when considering our country’s production capacity,” says the Brazilian executive.

See below the volume of corn exported from Brazil between Jan 2019 and May 2023. The data is from DataLiner.

Brazilian Corn exports | Jan 2019 – May 2023 | WTMT

Source: DataLiner (click here to request a demo)

What changes for corn?

Paulo Molinari, a senior corn consultant at Safras & Mercado, says that the higher volume exported by Brazil compared to the United States should imply changes in supply, demand, and prices.

“We have seen lower crop yields in Argentina, in addition to lower grain exports from Ukraine, which favors the US and Brazil. Thus, we should see many countries opting to buy grains from Brazil and, consequently, lower CBOT corn futures,” said Molinari.

Molinari also says Brazil needs to expand its internal capacity for storing corn, as production growth does not match the increase in warehouses.

Source: Money Times

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