Corn Export Market Lose Momentum in Brazil

The Brazilian corn export market remains sluggish, weighed down by increasing domestic competition that offers more attractive prices to producers. According to TF Agroeconômica, a lack of interest from sellers in exporting has driven down premium prices, which are now limited to January offers. No data is available for other safrinha periods.

At the Port of Paranaguá, January premiums are showing buyers willing to pay 100 cents per bushel based on the H5 contract, but no sellers have been recorded. No transactions have been reported for upcoming months like February, March, or May, and there are no buying or selling quotations available for July and August, underscoring the low activity in the export market.

Here are the top ten Brazilian ports that exported the most corn in terms of volume. The data comes from DataLiner –  a Datamar trade intelligence product.

Corn Export Ports | Brazil | 2024 | WTMT

Source: DataLiner (click here to request a demo)

On the global stage, the Chinese market is also showing signs of weakness. Corn export market prices in Brazil have dropped by 4 CNY/ton for both January and March. Corn starch prices displayed mixed results, rising by 18 CNY/ton for January but falling by 29 CNY/ton for March. In the animal protein sector, futures prices for eggs and pork saw significant drops during the same periods, reflecting tough market conditions.

In contrast, the Argentine market is more active. The price of corn for immediate delivery increased by 3,000 Argentine pesos, reaching 190,000 pesos/ton. Futures for January and February remained stable, while shipments from March to July ranged between $165 and $175 per ton. On the MATBA market, April corn saw a slight drop, quoted at $178/ton, while Chicago closed at $177.46/ton.

The disparity between Brazil and Argentina highlights contrasting commercialization strategies. Brazilian producers are focusing on the domestic market due to the low profitability of exports, while Argentina continues to show more vigor in international negotiations.

Source: Agro Link

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