Brazil’s corn exports are more competitive than the United States, the world’s largest exporters, and are expected to show volumes in excess of 1 million tons in June with the help of the exchange rate for business at a time when Americans are in the offseason, according to market players consulted by Reuters. In addition to the stronger dollar, which boosts sales of Brazilians by guaranteeing more real in the negotiations, Brazil’s crop will recover strongly against 2018 and Chicago stock prices have oscillated on the eve of a year’s high, due to delays in planting of the cereal in the US, which are also by far the largest global producers. Last Wednesday, prizes at the port of Paranaguá (PR) for Brazilian corn exports were around 25 cents a bushel over the Chicago contract, while in the US they were at 60 cents, the US product as more expensive, according to data quoted by consulting and brokerage INTL FCStone – at the same time of 2018, nor was there a positive differential for shipments of the Brazilian product. The market situation was so favorable to the agreements that a broker in Paraná, one of Brazil’s leading producing states, reported early export business to 2020, something he said he had never seen in his 30-year career.
This is at a time when experts point to the best conditions for the development of the second Brazilian cereal crop, which should allow Brazil, the second largest exporter of corn, to harvest a historical volume of almost 100 million tons, according to some consultancies. But it is the corn that is expected to export in 2019, with the National Association of Cereal Exporters (ANEC) reviewing forecasts and pointing to possibly record shipments of more than 30 million tons, while soyabean exports are expected to fall this year, with operators citing the impact of African swine fever on livestock in China, which is the largest importer of oilseed. Anec expects exports of 30 million tons of corn this year, with a bullish bias, while FCStone projects 32 million tons. According to the Paraná broker, more corn export businesses are coming out than for the domestic market, traditionally the largest demander of the country’s product, the largest global exporter of chicken meat and one of the largest pigs. According to the broker, corn traded for export originates mainly in Mato Grosso do Sul, since the product of this state has good logistic conditions to reach the port of Paranaguá, via railroad.
Source: Notícias Agrícolas