September 15, 2015

Brazilian Farmers continue to be Slow Sellers of their 2013/14 Corn

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

Brazilian farmers have also been slow sellers of their 2013/14 corn crop due to the low domestic corn prices. Analysts in Brazil estimate that farmers have sold just over 30% of their 2013/14 corn production. They are expected to continue selling their corn at a slow pace while they wait for better sales opportunities. One of their hopes is that the expected reduction in full-season corn acreage in Brazil could result in improved domestic corn prices later this year and in early 2015.

Corn exports from Brazil are also running at a slow pace. Exporters have shipped out 5 million tons of corn thus far in 2014 compared to 8 million tons of corn that had been exported by this time last year. During the first five days of September, corn exports from Brazil averaged 68,000 tons per day.

The lineup of vessels waiting for corn is also less than last year and many market observers feel that Brazil's corn exports will fall short of the 21 million tons estimated by Conab. Some analysts have put the corn exports closer to 15 to 17 million tons.

Farmers in Brazil continue to participate in Pepro Program auctions conducted by Conab where the government guarantees a minimum price of about US$ 2.80 per bushel for their corn. There have been several auctions already and the next auction is scheduled for September 18th when an additional 1.75 million tons of corn sales will be subsidized.