Foreign media, March 8 news: With corn and wheat prices rise, Brazil to accelerate the pace of exports. the first few days of March, Brazil has finalized at least 500,000 tons of corn export orders, equivalent to the entire export volume in February.
Wheat futures on the Chicago Board of Trade jumped 40 percent last week, and corn futures jumped 15 percent.
Luis Pacho, an analyst at consulting firm T&F, said Parana state signed up to export about 500,000 tons of corn because export prices are higher than domestic prices. The corn will be shipped in March and April.
Consulting firm StoneX forecasts Brazil will export 40 million tons of corn in 2021/2022, almost twice as much as last year. Last year Brazil was hit by drought and frost, resulting in a severe reduction in second season corn production. Brazil is currently sowing second-season corn, which is progressing well due to a faster soybean harvest. Total corn production in Brazil this year is expected to be 111 million to 112 million tons. As a comparison, the previous year's Brazilian corn production was 87 million tons.
The surge in international wheat prices has also pushed Brazilian wheat exports up.
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Rio Grande do Sul finalized a deal to export 100,000 tons of wheat last week, T&F's Pacho said. The company has raised its 2021/2022 wheat export estimate to 2.7 million tons from 2.5 million tons because of strong sales between December and February. In previous years, Brazil was a net wheat importer.
StoneX said that with international wheat prices soaring, Brazilian wheat prices are very competitive, combined with a strong dollar exchange rate, while Brazilian domestic demand is weak, boosting export demand growth.