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Brazil corn export pace in January takes it closer to Conab 2019-20 forecast

Brazil’s corn exports were at 1.2 million mt over the first 10 working days of the month, at an average daily rate of 124,320 mt, exceeding the 95,781.3 mt/day registered over January 2020, taking the country a step closer to the official export forecast for 2019-20, data released by the Foreign Trade Secretariat showed Jan. 18.

Brazil has already exported 32.5 million mt of corn since the beginning of the marketing year in February up to December, customs data showed.

Brazil’s national agricultural agency Companhia Nacional de Abastecimento or Conab has forecast Brazil’s corn exports during February 2020-January 2021 at 34.5 million mt.

Brazil is the world’s second-largest exporter and shipped a record 41.1 million mt of corn in the 2018-19 marketing year, customs data showed.

Brazil’s corn exports in 2019-20 have fallen from the last season due to a jump in local demand and low stocks.

Corn supply in Brazil is typically low from January to June and with the beginning of the soybean harvest, logistics and freight availability will be a concern.

The US, the largest exporter of corn, is likely to benefit from the low supplies in Brazil and other exporters during the first half of 2021 amid favorable prices.

At the present, US corn is the cheapest among the major exporting countries, Platts data showed, and also the exporter with corn supply available.

The unexpected surge in demand for grains from China with rapid recovery of the Chinese pig herd and local supply shortages pushed up corn prices in 2020.

Moreover, the tight supply situation in the global corn market due to lesser than expected production in the US, Ukraine, and Argentina in 2020-21 has boosted international corn prices to multi-year highs in the last few days.
Source: Platts

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