Brazil may import U.S. corn
A tight supply of corn has the Brazilian Ministry of Agriculture considering imports from the U.S.
Northstar Commodity chief market analyst Mark Schultz says Brazil is harvesting a poor second crop.
“That is the corn that is planted (directly) after they harvest the soybeans. They got very aggressive over the last three to four years of planting more and more safrinha corn to supplement their livestock sector down the road.”
Drought has reduced the crop size, creating a short corn supply that’s escalated prices locally as high as $6.90 per bushel.
Because of the pressure domestic livestock producers are feeling, Schultz says Brazil will open its doors to as much as 1.5 million metric tons of GMO corn.
Argentina and Paraguay have been filling that void, but it is possible Brazil may eventually turn to the U.S.
“Let’s just say (the U.S.) gets a portion of the 35 million bushels, it’s not over the top of some huge number. But it would certainly tie up a little bit more. So I wouldn’t call it a big market mover.”
Shultz tells Brownfield the greater significance to the U.S. is not having to compete with Brazil for export business this fall.
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