As the end of the marketing year for corn and soybeans draws to a close, a report published this week (August 31) reflects “lower production and increased competition” for corn in the US.
The US Department of Agriculture (USDA) Grain Transportation Report recorded a decrease in corn exports by 34% compared to the same time last year.
Net corn export sales for the marketing year 2022/2023 were down 0.023 million metric tonnes (mmt), 110% from last week.
The USDA stated that low water levels on the Mississippi River System (MRS) could be “problematic” for the corn harvest.
Water levels on the river have been been falling since June. According to the USDA, with “lower than normal precipitation” in the forecast, levels will likely continue to fall in the coming weeks.
Growing restrictions since June mean that a lower amount of grain is allowed to be loaded on a barge, according to the USDA.
Corn exports
The US is known to dominate the international corn market each year, but this time has lost its renowned title to Brazil.
USDA data shows Brazil will account for nearly 32% of global corn exports in 2023, while the US will export about 23%.
As the US deals with precipitation issues, Brazil has made major investments.
Brazil has revised upwards its forecast for the gross value of its agricultural production for 2023 to R$ 1.135 trillion (€208.5 billion).
This is an increase of 1.9% when compared to the previous year, according to the country’s Ministry of Agriculture, Livestock and Food Supply (MAPA).
According to Reuters the Tegram grain terminal at Itaqui, built and operated by foreign and Brazilian grain merchants boosted its grain export volumes by 306% in eight years to more than 13 million tonnes in 2022.
Also a highway licence issued two years ago has modernised a key Amazonian grain corridor stretching over 1,000km from Mato Grosso to ports in Para state.
For years, caravans of grain trucks would get stuck regularly in deep mud on that road when they got caught in the rain on the way to northern ports.
