Deficiency of corn in Brazil causes rise in world prices
This year, export of corn from Brazil will decrease significantly due to a shortage in the domestic market. In May, the country exports historically minimum amount - only 2 thousand tonnes of maize, which will allow other exporters to increase their shipment.
Moreover, imports of maize from neighboring countries - Argentina and Paraguay - will be the highest in 15 years. Reducing the Brazilian proposal supporting corn futures on the Chicago exchange. During the month of July futures rose by + 5.25%.
According to Reuters, in the current marketing year that started in Brazil in February, the country exported 26.1 million tons of corn (28.9 million tons - forecast in November) compared with last year's amount - 30.4 million tons.
In anticipation of the second record harvest of maize, which is 2/3 of the gross harvest of maize in the country, the initial forecasts Conab - 58 million tons. Brazil stocks actively exported 2014/15 crop season. However, dry weather in April and early May caused damage to crops of corn, and the average gross yield expectations now represent no more than 52 million tons. Cleaning work started two weeks earlier than last year, and now in Brazil thrashed 0.4% harvest of 2015/16 season.