South America Calling
Alastair Stewart South America Correspondent

Wednesday 09/26/12

Brazil Ramps Up Corn Exports in September

Brazilian corn exports have accelerated in September, adding weight to ideas that shipments could reach 17, 18 or 19 million metric tons (mmt) in the 2012-13 season (Feb-Jan).

Corn shipments totaled 2.37 mmt in the first three weeks of September, closing in on the 2.7 mmt shipped in the whole of August.

If this pace were maintained, monthly exports would reach a record 3.2 mmt this month.

A record second crop of around 38 mmt has allowed Brazil to step into the gap in the export market left by crop losses in Argentina and the U.S. As a result, the South American farm giant will probably be the world's No. 2 corn exporter this year.

Shipments will be higher than the 10.9 mmt registered in 2011-12 and a new yearly record will certainly be set. Most local forecasts currently peg exports at around 17 mmt, although that number may be conservative assuming the early season logistical bottlenecks don't return.

Much depends on sales for November, December and January, which have been slow over the last couple of weeks due principally to the large discounts demanded on Brazilian product.

The discounts are the result of a perception among exporters that Brazilian farmers still hold large corn stocks and need to clear the silos before the summer soybean crop arrives. Reports that Mato Grosso risks losing up to 1 mmt of corn stored in the open air because of returning rains only serve to strengthen that perception.

As a result, trading firms are demanding discounts of $60 to $70 per metric ton on U.S. corn and prices for November to December delivery at port currently stand at R$17 per bag ($3.57 per bushel), well down on the R$20-to-R$23 level quoted over the last few months.

Posted at 10:30AM CDT 09/26/12 by Alastair Stewart
Comments (4)
How many a bu. per metric ton ?
Posted by Jerry Hill at 11:27AM CDT 09/26/12
Can you translate how many bushels in 17 mil metric tons?
Posted by Jerry Hill at 11:32AM CDT 09/26/12
669 to 694 Million bushels depending if you are talking No. 1 or No.2.
Posted by Freeport IL at 4:17PM CDT 09/26/12
Thank you Freeport IL.
Posted by ALASTAIR STEWART at 8:02PM CDT 09/26/12
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