Brazil exports 40 million tons of corn and reaches new record

Brazilian corn exports broke a new record. According to data from the Secretariat of Foreign Trade (Secex), of the Ministry of Economy, in the last 12 months, Brazil exported 40 million tons. “It’s an unprecedented number. There has never been a volume like this”, recognizes the vice-president of the National Agricultural Society (SNA), Hélio Sirimarco.

Secex also reported that, from January to September of this year, the country exported 30.104 million tons of corn. The volume is 138,40% higher than the 12.625 million tons shipped in the first nine months of 2018.

For Sirimarco, the record production was the result of the increase in the second harvest area and excellent weather conditions. According to a survey by the National Supply Company (Conab), which followed the corn planting calendar, rapid growth in production was recorded, mainly in regions such as Sealba (Sergipe, Alagoas and northeastern Bahia) and also in Amapá and Roraima .

In the latter case, production in both states is similar to the Northern Hemisphere calendar, where planting takes place between May and June.

When commenting on the Secex data, the SNA vice-president reinforced the national estimate for cereal cultivation, which foresees, for the first, second and third harvests, in the 2019/20 season, an increase of 0,20%, which should result in production of 98.4 million tons – a drop of 1,70% compared to the record harvest of 2018/19.

In relation to the first harvest, Conab estimated the corn area in the 2019/20 season at 4.144,7 million hectares, 1% larger than the area cultivated in the 2018/19 harvest.

For the second harvest, which is expected to begin in January 2020, production was estimated at 70.9 million tons. The expectation is for soybean planting, as if it occurs as expected, it will guarantee a favorable planting window for corn in the second harvest.

Result of the month

Also according to information from Secex, corn exports in September 2019 showed considerable growth compared to the same period last year. 6.501 million tons were shipped – 93,40% above the volume of 3.36 million tons exported in September 2018. However, compared to August of that year, the volume was 14,90% lower. During that period, the country exported 7.644 million tons.

In the opinion of analysts, the month's result is related to the considerable volume of business in the second harvest (2018/19) carried out in advance since last year, the rise in corn futures contracts on the Chicago Stock Exchange (CBOT) and the appreciation of the dollar in July and August.