US imports corn from Brazil

On June 3, DatamarNews reported that Brazilian corn exports might hit record highs this year due to two factors: a historic delay in corn planting in the US, the world’s largest producer, and exporter, and Brazil’s high production during this period. As a result, companies like ADM (Archer Daniels Midland) are selling Brazilian corn to Smithfield Foods in the US.

ADM runs more than 270 factories worldwide, where cereal grains and oilseeds transformed into numerous products used in food, beverages, industry and animal feed. In Brazil, the company processes and sells soybean, corn and animal feed, as well as biofuels, chemicals, and unique ingredients for the industry.

According to sources who requested anonymity, Smithfield – largest pork processor in the US which belongs to the Chinese group Shuanghui since 2013 – owns port facilities on the US’ East Coast and sometimes sources corn from abroad because of the cost of grain transport from the domestic Corn Belt.

According to Reuters, one source said Smithfield Foods probably ordered between five and ten corn shipments from Brazil, which are to be shipped between September 2019 and January 2020.

Rain delays corn planting

 
The US Department of Agriculture said that only 67% of US corn had been planted by June 2nd, well behind the five-year average of 96%, due to heavy rains faced by American farmers.  Meanwhile, the Brazilian government estimates were for corn exports to grow 25% this season to 31m tons, even before weather problems hit US corn crops.

The last time Brazil sold significant quantities of corn to the US was during a drought in 2012 and 2013. At the time, Brazilian corn exports to the US totaled 1.7m tons, according to government data.

Brazil to export corn to Mexico

 
Mexican importers who normally buy this grain from the US, have reserved a 35,000 ton shipment from Brazil. The cargo will be shipped from the Port of Santarém and will leave on June 22^nd. The export is taking place mainly due to two factors: the trade dispute between Mexico and the US and problems faced by North American producers during this harvest.

Mexico is the main destination for US corn exports. This would be the first corn export from Brazil to Mexico since 33,000 tons were shipped January, according to the Brazilian Agricultural Ministry.

Source: Reuters

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