Brazil's corn supplies build on delayed plantings

Keyword:
Publish time: 24th September, 2013      Source: www.cnchemicals.com
Information collection and data processing:  CCM     For more information, please contact us
   


September 24, 2013

   

   
Brazil''s corn supplies build on delayed plantings
   
   

   

Brazil''s National Supply Company (Conab) says that the country''s second corn crop (safrinha) harvest is slow to finish due to delayed plantings in February.

   

   

Currently, the country has reached over 95% of the safrinha harvest. The rains of February have impeded early works.

   

   

The last Conab report estimated 46.1 million tonnes for the second corn crop, which is a new record. In the previous season, Brazil had harvested 39.1 million tonnes of its winter crop.

   

   

Despite unfavourable international prices, Brazilian farmers exported 3.05 million tonnes, just in August, partly due to a higher dollar value in the period against the Brazilian Real. But the last week of August had insignificant cornexports.

   

   

Paulo Molinari, a grain market analyst at Safras & Mercado, a consultancy group based in Porto Alegre, Rio Grande do Sul, says that Brazilian farmers are capitalised and perhaps may not rush to sell corn.

   

   

"Now the US harvest is coming, and Brazil is not competitive with low prices. As Brazilian growers are capitalised, they may lose the best sales moments. There is still a huge corn stock to sell. Just in Mato Grosso (state), there is still 50% of the safrinha stock," explains Molinari.

   

   

Figures from Safras & Mercado reveal that Brazil still has 13.8 million tonnes of corn stocks from the 2012-13 season. As of September, the total domestic consumption in the country is estimated at 52.3 million tonnes (45 million for animals, approximately), and 18.7 million tonnes exported.