High Domestic Demand Dampens Brazil’s Corn Exports

Brazilian corn exports are expected to fall in 2018/19, according to this year’s first forecast from the United States Department of Agriculture (USDA) Brasília bureau. With the forecast set at 30 million tonnes, 2018/19 exports reflect a 3 million tonne decline year-over-year. The USDA projection is well below the 2014/15 corn export record of 34.46 million tonnes. Several factors contribute to this year’s forecast decline. Brazil’s domestic demand for corn has increased due to the expansion of the country’s pork and poultry industries and burgeoning grain ethanol sector. Furthermore, massive soybean exports out of Brazilian ports stretch the country’s transport infrastructure. Soybean exports will dwarf those of corn by 42.1 million tonnes, up from a 19 million tonne gap in 2016. As Brazil’s domestic industries siphon more corn volume away from the global marketplace, Gro Intelligence can provide subscribers with the data and analytics necessary to better predict corn trade flows.