SAO PAULO, Brazil (Reuters) – Brazilian corn exports could jump by as much as 40 percent this year.
The expected increase to nine to 11 million tonnes in 2010-11 from 7.8 million tonnes in 2009-10 is the result of a large corn surplus in Brazil caused by last year’s large harvest, said Felicio Paschoal da Costa Aguiar, head of the National Association of Cereal Exporters.
Brazilian corn output is expected to rise slightly this season to 51.3 million tonnes from 51 million tonnes, said the agriculture ministry, thanks to good weather and in spite of a nine percent cut in total planted area.
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Stocks are also plentiful, totaling 11 million tonnes when the harvest began. Domestic demand is strong in a population of around 190 million, and Brazil is the world’s top poultry exporter. The poultry industry uses corn as feed.
Brazil is expected to consume 46 million tonnes of corn in 2010.
“Internal consumption has risen quite a lot, but it won’t be sufficient to consume all the surplus,” said Costa Aguiar, who is also sales manager for Cargill. “One way or another, we will have to shift this (surplus supply) from here. The government, producers and exporters will have to set prices such that it moves this corn.”
He said the pace of exports partly depends on the government continuing its program of subsidies for hauling corn by road.
Corn exports earned Brazil $1.2 billion last year.
The country is also harvesting what is set to be a record soybean crop.
An analyst said some producers have rented nearby gymnasiums after running out of storage space.
