Brazil's corn exports down 30% on year at 4.15 mil mt in July: trade secretariat

New Delhi — Brazil exported 4.15 million mt of corn in July, down 30% year-on-year, but higher than the five-year average of 2.3 million mt, Foreign Trade Secretariat data released on August 3 showed.

Port data from Brazil showed that over 6 million mt of corn was lined up for export in August, national agricultural agency Companhia Nacional de Abastecimento said in its weekly report August 3. Brazil exported about 7.3 million mt of corn in August 2019.

The country is expected to export 34.5 million mt of corn in the 2019-20 marketing season (February 2020-January 2021), down from the record 41.07 million mt in the previous marketing season, according to Conab. Corn exports are slower than previously due to depleted corn stocks following record exports last year and delays in harvesting.

Corn prices usually ease during the harvest season, but prices have remained at an elevated level so far in Brazil.

Corn prices rose again in most regions in Brazil due to retraction in sales and strong demand, according to a survey conducted by Brazil's Centro de Estudos Avancados em Economia Aplicada (CEPEA) on August 3.

Although the corn harvest is progressing, buyers are finding it difficult to acquire new lots and they are buying in small volumes for short-term use, the survey said.

"In the field, with the harvest gaining pace, in some regions, farmers are beginning to indicate negative adjustments in productivity, especially in the crops of Parana, Sao Paulo and Mato Grosso do Sul, affected by drought during development," the survey said.

Corn FOB Santos for September loading cargoes was assessed at $168.30/mt on August 3, 59 cents higher than the previous assessment. The Platts assessment considered premiums in the Santos cargo market at plus 110 cents/bu to CBOT September (U) corn futures.