Maize exports through Paranaguá increase as soy demand weakens.
Brazilian maize exports via Paranaguá (PR) are expected to rise sharply in April and May, when soybean shipments usually prevail in the country’s second largest port.
Maize exporters have concluded agreements to ship at least 800,000 tonnes during those two months, compared with nothing in 2018. This is in accordance with the National Association of Exporters of Cereals (Anec). An experts in grain export said that such maize volumes export at this time of year are atypical.
Apparently, the factors driving shipments include competition from US soybean exports, which have hampered demand for Brazilian oilseeds and paved the way for maize exports.
According to Anec, Brazil exported 3.4 million tons of Paranaguá soybean in April-May 2018, compared to no maize shipments in the period. Apparently, another factor driving maize exports is the need to free up storage space to accommodate the second maize crop to be harvested by the middle of the year.
An expert spoken to Paranagua port operators last week. He estimated the maize exports are expected to reach up to 1 million tonnes in April-May, as new boarding commitments are ready to be made.
If confirmed, Paranaguá maize export volumes in two months would correspond to last year’s total exported through this port according to Anec data. An exporter friend of us told that would ship 120,000 tonnes on two ships in April and May. The situation illustrates how the trade dispute between the USA and China is affecting trade flows, as most Brazilian maize exports are usually shipped in the second half of the year
The government expects Brazil’s maize exports to increase by 25.5 percent to 31 million tonnes this season. After a drought in 2018, which has damaged Brazil’s winter crop, production of so-called safflower corn will grow 23 percent this year to 66.22 million tonnes.