USto reclaim its spotas top corn exporter in 2014

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Publish time: 14th November, 2013      Source: www.cnchemicals.com
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November 14, 2013

   

   

USto reclaim its spotas top corn exporter in 2014

   
   
   

Brazil''s corn exports in 2013 have surpassed last year''s record as the agricultural superpower gained international market share with US stocks still low,but it is forecast that the US is set to make a huge comeback in 2014.

   

   

Brazil exported 20.8 million tonnes of corn between January and November 10, according to trade data, passing the 19.77 million tonnes shipped abroad in all of 2012 when drought crimped production in the US, the top producer and exporter of the grain.

   

   

According to the USDA, for the 2012-13 crop year, Brazil exported 22 million tonnes of corn while the US exported 18.58 million tonnes. However, Brazil''s exports will likely fall off in December and January, and the US should reclaim its spot as the top corn exporter.

   

   

Brazilian corn exports usually start trailing off at the end of the year, when logistics make the US crop more accessible, but last season was atypical, analysts said.

   

   

"Last year, with the damage in the US, prices jumped to US$7.50 per .19 tonne and the whole world bought from Brazil at any price," said Paulo Molinari of Brazil-based Safras & Mercado consultancy.

   

   

Now, prices on the Chicago Board of Trade are around US$4.30 per .11 tonne on promises of an abundant supply from the Northern Hemisphere as the US harvests a record crop.

   

   

In the past 10 years, Brazil''s corn production has increased 60%, culminating in a record 80 million-tonne crop in the 2012-13 season that left the country with far more corn than it can use domestically.

   

   

Most analysts believe the next corn crop will be smaller with farmers preferring to plant soy and cotton. The USDA expects Brazil to produce 72 million tonnes of corn in the 2013/-14 season and export 20 million tonnes for that crop year. The US is forecast to export 35.6 million tonnes in 2013-14 marketing year.

   

   

Molinari said an agreement for Brazil to export corn to China inked last week is not likely to increase exports by much. Brazil''s agriculture ministry believes China could eventually take up to 10 million tonnes of Brazil''s corn as pork and poultry consumption rises, but it will take time for Brazil to gain a share of the market which is dominated by the US.