Brazil 2021 corn exports seen falling to 32 million tonnes

Brazil 2021 corn exports seen falling to 32 million tonnes

Reuters – Brazil’s cereal exporter association Anec on May 5 maintained the country would ship some 32 million tonnes of corn this year, 1.6 million tonnes less than in 2020, despite a drought that is affecting yields in certain producing areas.

Sergio Mendes, Anec’s director general, said Brazil’s corn export prospects remain good thanks to the relatively good conditions of cornfields in Mato Grosso, the state’s superior logistics capabilities, and a favourable exchange rate.

Mendes said that his estimates in the beginning of the corn season already indicated potentially lower shipments compared with 2020, because delays in the corn harvest narrowed Brazil’s export window.

“Based on the current scenario, it is still possible to maintain the numbers (of exports), but in any case lower (than 2020),” he told Reuters in an interview.

Brazil’s second corn crop, which is planted after soybeans are harvested, will represent around 70 per cent of the country’s output in 2021.

But in recent days, a drought in key second corn-producing regions led analysts to slash second corn output estimates by as much as 10 million tonnes.

Brazil’s second corn, which competes with the United States’ corn in export markets during the second half of the year, was planted at a riskier climate window due to soy-harvesting delays in 2021.

Regarding soybean exports, Anec sees shipments reaching up to 83 million tonnes this year driven by strong Chinese demand. If confirmed, Brazil would break an export record set in 2018 of 82.88 million tonnes, according to Anec data.

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