Brazil may begin to import corn through the internal deficit

a Sharp reduction in carryover stocks of corn in Brazil may lead to a jump in domestic prices across the country will have to import the volumes needed for domestic consumption.

the Decrease in carryover stocks due to increased consumption of corn for feed, since Brazil started to export meat products, the price of which this week reached a record value. Also in the country, especially in the state of Mato Grosso significant amounts of corn going to ethanol production, which is also gradually increasing. In addition, the country does not reduce the rate of export of corn.

inventory Reduction expected in the offseason because the first corn crop, which is 27% of the total collection, start to collect in January, while the harvest safring (71%) will hit the market in June.

the Growth in maize prices will contribute to high logistics costs.

For the third week of November, Brazil had slowed corn exports to 500 thousand t, and in General within the month shipped 2,605 million tons Experts believe that by the end of the month will be shipped another 1.1 million tons, so the total exports of November will reach 3.7 million tonnes, which is significantly less than was exported in October to 6.1 million tons, and about the same level as last year.

the Gradual increase in domestic prices due to demand from ethanol producers and livestock breeders, slows down the export of corn.

prices of Brazilian corn has grown to 178-179 $/t FOB Brazil compared 170-173 $/MT FOB on grain from the United States and Argentina. Ukrainian corn for delivery in December went up to 170-172 $/t FOB, but podalshe Rosanna price limits that buyers have started to buy South American corn of the new harvest.

the Taiwan Association of feed producers (MFIG) November 26, bought 65 thousand tons of Argentine fodder maize for delivery in February-March at a price 211,6 $/t C&F, which corresponds to the current prices on FOB basis.