Conab forecasts that Brazil’s total corn production in 2023 will be almost 130 million metric tons, the highest in history, and that exports will reach 50 million metric tons for the first time.
Brazil will surpass the United States this year as world’s leading exporter of cornthanks to an abundant harvest and logistical advances such as the consolidation of export routes in the north, which are boosting the competitiveness of the South American cereal powerhouse.
The corn exports through the ports of northern Brazil, which use the waterways of the river basin Amazon River to ship grain around the world, they are on track to top volumes through the more traditional port of Santos for the third year in a row, according to a Reuters analysis of grain shipping data.
The change highlights how Brazil, which produces three crops of corn a year and still with vast tracts of underutilized farmland, it is finally overcoming some of the infrastructure bottlenecks that have long made it difficult to transport its bountiful crops to world markets.
that and a new supply agreement with China announced last year suggest that Brazil may be ushering in a longer era of supremacy over US corn exports, unlike the last time they briefly grabbed the world corn crown during the 2012/13 North American season, affected by the drought.
brazil flag
Photo: Pixabay
The better export capacity has helped Brazil to cover the global market gaps of corn during disruptions caused by the war in Ukraine, the main grain exporter, and the trade tension between the United States and China.
“We celebrated a lot… when the (corn export) volumes through the northern ports equaled those of Santos,” said Sergio Mendes, head of Brazilian grain export group Anec. “Using the northern ports (…) you save 20 reais ($4.12) per ton (of corn).”
Conab anticipates that the Brazil’s total maize production in 2023 it will be almost 130 million metric tons, the highest in history, and that exports will reach 50 million metric tons for the first time.}
the price of grains
The corn futures in chicago have fallen from a maximum of 10 years in April 2022 to a two-and-a-half-year low this month, partly due to generous supplies from Brazil.
Brazil’s thriving export infrastructure shows little sign of abating, though lower prices may deter farmers from expanding plantings so quickly.
Source: Ambito
