Brazil is planning to purchase about 4 million tons of local corn in 2013 to rebuild its reserves, taking advantage of low prices. The supply agency of the country reported on April 18.
Inventory of corn in Brazil, probably, fell from record high levels in 2012 to 500 thousand tons, per report of the Conab agency. The prices are likely to decline due to this year's expected record high yields Brazil and the United States.

Purchase will most likely occure in the second half of the year, during harvest in the United States, and Brazil will start harvest of the second of the two yields.

In order to avoid extrime price volatility and ensure an uninterrupted supply of feed for livestock, the goverment wants to increase its storage capacity.

The Conab expects Brazil to harvest 77.45 million tons of corn this season, surpassing last year's record, particularly due to expected huge yields from the second harvest.