BRASÍLIA: In February, Brazil recorded corn exports of 5.37 million tons. According to data from the Ministry of Development, Industry and Foreign Trade, this is almost five times higher than exports for February 2015, which stood at 1.10 million tons. These exports produced revenue of $892.2 million, compared with $206.4 million in February last year.
According to Lucilio Alves, a professor and grain researcher in Brazil, this phenomenon can be explained by a combination of a bumper harvest, favorable Brazilian exchange rate, and attractive prices. “We are seeing domestic corn prices 30% higher than those in Argentinian and American markets, and so producers are taking advantage of this opportunity,” he stated.
Although Brazil’s prices for corn have been high for some months, Alves explained that they do not represent an absolute record. “The price curve is rising and current corn prices are the highest we’ve seen in nominal terms. But taking inflation into account, the price is only higher than that of December 2012,” explained Alves. According to Brazil’s Central Bank, inflation estimates are 7.57% in 2016 and 6% in 2017.
