URBANA, IL – Corn growers in the United States may find an interesting partner in the export market soon: Brazil.
According to a FarmDocDaily report from the University of Illinois, projections for the safrinha corn or second crop in Brazil have been reduced due to an ongoing drought in the main producing regions and recent frosts in the South-Central region.
Safras & Mercado, a private consulting firm in Brazil, indicates that the country will harvest 2.4 billion bushels of corn this season, a 16 percent reduction from last year.
Meanwhile, the average cash price in Brazil is setting a record in real terms as th market hits its highest levels since 2004.
International demand for corn is pushing prices higher and Brazil’s government published new rules for GMO crops which will make it easier to import more corn from the U.S. at lower prices for domestic use, while higher priced Brazilian corn will continue to move into other export markets.
Learn more at FarmDoc Daily.
(SOURCE: All Ag News)