Corn exports rise over 130%

Brazilian corn exports rose more than 130% between January and September this year compared to the same period of 2018, according to the Ministry of Agriculture’s Department of Trade and International Relations.

Shipments of grain, which had a record harvest in 2018/2019, grew 134.7% in revenue, reaching US$4.98bn, with 29m tons traded, an increase of 130%.

According to the government, the main buyers of Brazilian corn were: Japan (US$605.13m), South Korea (US$386.40m), European Union (US$371.25m), Vietnam (US$293.96m) and Taiwan ($292.61m).

Difference in export prices decreases

The difference between the export price of US corn to Brazilian corn is narrowing since the US has been uncompetitive against the South American exporter for almost seven months, according to data from the International Grain Council.

The export price of Brazilian corn (US$171/mt) was higher than the US export price (US$170/mt) on October 9, according to the data.

Although the export price of Brazilian corn dropped below US corn on Thursday, the spread was still far from the US$19/mt seen at the end of July. The export price gap between US and Brazilian corn has been less than US$5 since the last week of September, according to the data, as Brazilian farmers shift their focus to soybeans.

After exporting at a record pace, Brazilian corn producers are now slowing sales and expecting higher prices.

US exports were hit hard this year due to increased exports from Brazil and Argentina following record harvests in both countries in 2018-19.

US corn exports in the first eight months of the year fell by 35% to 31.99m tons, according to data published by the US Department of Agriculture’s Foreign Agricultural Service.

Sources: G1 Agro and Platts

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