Photo: dbrekke via flickr
Despite the historic drought that crushed US corn crops this summer, today’s feedstock report from the USDA projects record worldwide corn supplies for 2012/2013.Thank the Brazilians.
“Brazil’s corn exports for trade year 2012/13 are raised over 30 per cent this month to a record 19.0 million tons, supporting an increase in forecast corn trade and a sharp reduction in U.S. exports to the lowest level in almost 40 years,” wrote the USDA.
That will translate into record foreign corn supplies of 673.5 million tons.
Here’s what the story looks like in graph form:
From the report:
Brazil reportedly shipped a record pace of corn exports in September 2012 of over 3 million tons, boosting estimated 2011/12 exports 0.7 million this month to 12.7 million. Brazil has demonstrated that without soybeans and products taking priority for ports and other transportation infrastructure, it can ship very large volumes of corn if prices are attractive. From October 2012 to February 2013, Brazil is expected to ship large volumes of corn, with a secondary increase in August and September 2013 if soybean shipments tail off or transportation bottlenecks are reduced.
Corn futures were down more than 1 per cent today, and will now struggle to return to the highs of this summer: