According to the Brazilian grains traders lobby Anec, corn exports from Brazil are expected to pick up pace in July, reaching an estimated 3.4 million metric tons. This would represent a 2.4 million ton increase compared to June.
The rise in corn exports comes as the soy export season is losing momentum. Soybean shipments are expected to grow by almost 900,000 tons in July compared to the same month last year, but this would still be a sharp decline from the record 13.9 million tons exported in June.
The shift in focus from soy to corn exports is due to the timing of the Brazilian crop seasons. Brazil’s second corn crop, which is sowed after soybeans are harvested on the same areas, is mainly exported in the second half of the year when it competes with supplies from the United States.
Consultancy Agroconsult has pegged Brazil’s second corn production at 100.5 million tons and exports at about 42 million tons. However, the projected lower corn exports this season reflect weaker demand from China and competition from rival suppliers like Argentina and Ukraine.
China remains the top destination for both Brazilian corn and soybean exports, accounting for 20% and 75% of shipments respectively in the first half of 2023.
The shift in Brazil’s agricultural export dynamics highlights the country’s ability to adapt to changing market conditions, leveraging its diverse crop production to maintain a strong presence in global agricultural trade. However, the competition from other major producers and the impact of external factors like demand from China will continue to shape Brazil’s export performance in the coming months.