SÃO PAULO, BRAZIL — Brazil exported 60,000 tonnes of corn to the United States, according to Refinitiv data. The shipment is rare since the United States is the world’s largest corn producer and currently exports between 10% to 20% of its annual production, according to a U.S. Department of Agriculture’s (USDA) Economic Research Service (ERS) report.
“The sources said U.S. demand for Brazil’s corn has been driven by fears of crop failure in North America, as U.S. farmers dealt with climate issues in the beginning of the planting season,” Reuters said.
Corn previously was shipped from Brazil to the United States via NovaAgri SA to Smithfield Foods on Sept. 3 totaling 60,000 tonnes, Reuters noted.
The USDA noted a trend of Brazil emerging as the largest U.S. competitor in the global corn market. A change in export seasonality could alter the seasonality of corn prices, further weakening corn prices at harvest eroding U.S. market share, the USDA said.
Another shipment transporting 52,400 tonnes of corn is expected to arrive in the United States on Oct. 17, Reuters said.