Escalation in Corn Price in Brazil to Impact Livestock Producers

06/25/2019

According to the USDA GAIN Report BR19076 of April 8th Brazil will harvest 100 million metric tons of corn in the current season and will export 30 million tons. Escalation in the World price of corn, in part due to the lower projections for the 2019 harvest in the U.S., will deprive chicken, hog and egg producers in Brazil of traditionally low-priced corn. The situation is reminiscent of the situation in 2016 following a severe drought that impacted yields.

Most exports of corn from Brazil are derived from the Safrinha (second) crop harvested in June in the center-west region of the nation. Production in 2019 was limited by drought Accordingly exports will be drawn from the first crop of 78 million metric tons. 

 Transport to export ports is limited by deficiencies in the road system. Transport over BR-163 extending for 600 miles is required to ship corn from major growing areas to ports. Major customers for Brazilian corn include Iran (27 percent of exports), Vietnam (12 percent), Spain (10 percent) and Egypt (8 percent).






















































































































































































Top