Brazilian Meat Processors Importing Corn
USAgNet - 04/12/2021
Meat lobbying group ABPA projects that Brazil’s chicken and pork processors will need to import corn starting in May as domestic prices of the cereal are historically high, according a report by Reuters.
Corn prices in the physical market surpassed 60 reais ($11.49) per 60-kg bag last week, the highest nominal value in history, reflecting low stockpiles after record exports in 2019.
Corn imports may come from Argentina and Paraguay, which are traditional providers during times of short supply in Brazil.
A weakening Brazilian real against the dollar may hamper imports from the United States, the world’s largest producer of the cereal.
“We monitor the market ... and imports may be needed as early as May,” said ABPA President Francisco Turra. “Corn’s first harvest in Brazil was bad because of drought, supply is low and prices are very high.”
Brazilian farmers harvest two major corn crops per year, but the second — representing about 75% of overall output — will only be ready by mid-June.
Brazil’s total corn crop this year is estimated at around 100 million tonnes.
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