Brazil, in the last financial year worldwide no. 2 among corn exporters, is in 2016 less corn run as originally expected, because expanding the supply crisis in the South American country. It offers the chance to reclaim market share, so the mood of a Reuters poll of competition from other countries.
Exports could fall to 26.1 to 28.9 million tons. Last year, there were still 30.2 million tons, which was already less than it had estimated the Ministry of agriculture; namely, it would have a new export record in the second year in a row.
Although the expert estimate of exports is still above the average of recent years, the professionals give to bear in mind that the high demand for feed manufacturers more corn for pig and poultry fatteners are must provided. Corn exports in May was the worst sales abroad at all with 2,000 tons while simultaneously imports from neighboring Argentina drastically increased.
Because corn prices on the world market under pressure, exporters with their hope which brings to the expression that the world supply situation is very good, now U.S. corn over to smaller supplier countries such as Argentina and the Ukraine are again competitive. If Brazil had delivery problems in October, so Japan would buy, for example, rather in Argentina or the Ukraine, so a trader in Tokyo. Buyers in Southeast Asia such as Viet Nam and Malaysia, however, who most recently more often have supplies in Brazil, would buy U.S. corn.
Last year, corn exports from Brazil rose to a new record high, because the local harvest brought also new levels and Brazil's currency lost value. There was so much exported, it currently has to import from neighbouring countries. That is why the Government has temporarily import tariffs last month on "0", because otherwise the meat production would have been too expensive.
Corn exports from Brazil have tripled since 2012. There was an extended drought, which resulted in that shot the corn prices in the United States. Since then, Brazil of so much corn exports that's passed in the world ranking of exporters to Argentina and now ranked two in place.
A strong demand of the Brazilian compound feed industry drives currently maize prices in the country, at the same time, the currency's exchange rate strengthened again, what both collectively slows down corn exports from Brazil.
