The U.S. ag attache in Brazil says in 2014-15, the country exported a record 32.5 MMT of corn due to a weakening currency, which raised domestic prices. In 2015-16, the attache expects exports of 26.5 MMT, which is up from its prior forecast of 25.5 MMT. The attache, however, notes the strong dollar will continue to incentive
The attache projects the 2015-16 corn crop at 81.5 MMT, down from a record 85 MMT in 2014-15. “According to the Brazilian feed industry, the price of corn for domestic use is increasing due to low stocks and is putting pressure on the pork and poultry sectors,” states the attache. “If the Brazilian currency continues to weaken into 2015-16, the expansion of the pork and poultry sector may begin to slow, slowing the pace of domestic corn consumption.”
The attache left its 2014-15 wheat production forecast unchanged at 6.0 MMT and its 2015-16 forecast unchanged at 5.6 MMT. “The quality of the wheat harvest was negatively impacted by heavy rains in the southern region, which will require Brazil to import more high quality wheat this year,” says the attache.
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