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Brazil to Catch U.S. as Top Corn Exporter, Says Agroconsult
Pessoa said yields are rising on second crop corn and production costs are falling, so Brazilian corn is becoming more cost-competitive with U.S. corn. Growers see second-crop corn as a way to optimize equipment and labor costs and as rotational crop that helps control pest and disease risks.
Brazilian corn exports tripled in the past decade, said USDA analysts in the 10-year baseline. “The export increase reflects greater corn area and yields, improved export infrastructure, and moderately increasing world prices.” Brazil now grows 95 million tonnes of corn, and USDA projects production of 130 million tonnes in 2027/18.
“Brazil’s corn production has risen rapidly over the past 15 years. The country has evolved into one the world’s leading corn producers, the second-largest exporter, and a competitor of the United States,” said USDA in a five-page discussion of the country’s economic condition and its agricultural sector. “Brazil’s corn production has risen in response to new high-yielding varieties, the introduction of GMO corn, a shift of corn production to higher yielding frontier producing regions of the country, the country’s climatic ability to produce two crops in the same year, and some government support. Production expansion has exceeded the rate of increase in domestic consumer demand, leaving surplus production for more exports.”
The U.S. is projected to control 36% of the world corn market in 2018/19, falling to 30% in 2027/28 as corn production – and trade – expand worldwide.