RIO DE JANEIRO, BRAZIL – From January to March, imports increased 90% over the previous year, according to data from the Ministry of Industry and Trade. BRF (BRFS3), the country’s largest poultry processor, has bought two shipments of corn from Argentina to help control costs, the company said this week, without disclosing the volumes. BRF also said it has been importing corn from Paraguay.
While small volumes of trade among major grain exporters is not atypical, Brazil has increased corn and soybean imports after strong Chinese demand depleted inventories. Meanwhile, domestic corn prices have more than doubled in the past 12 months. Futures contracts on the B3 (B3) surpassed the historic mark of R$100 per bag for the first time this month amid the impact of adverse weather on corn production.
Brazil’s demand for corn should be concentrated in Argentina, the third largest exporter. Argentine corn shipments at US$246.25 a ton are nearly US$36 a ton cheaper than Brazil’s grain, according to Commodity3 data.
“We could see significant volumes of corn coming from Argentina, as the country has grain available to export,” said Ricardo Santin, president of the Brazilian Animal Protein Association (ABPA), in an interview. Besides BRF, five more companies want to import, among them a large producer, he said.
ABPA also requested the Brazilian government to extend the already expired corn import tax exemption for purchases made outside Mercosur, as a way to facilitate imports from the United States, the largest corn exporter. Meat producers in the Northeast are looking for US suppliers of corn varieties approved for use in feed in Brazil, according to Santin.
Source: Moneytimes