The U.S. Grains Council says the stage is set for intense global competition for international corn markets. According to the Council – the U.S. and Brazil are both positioning themselves for a record setting corn harvest. A Grains Council representative based in Brazil says the summer crop harvest there has matched the anticipated volume of 36-million metric tons – 1.4-billion bushels. It’s estimated a record 7.1-million hectares – 17.5-million acres – will be devoted to second season corn – yielding another record setting 29-million tons – 1.1-billion bushels. If these projections are met and the favorable weather continues – Brazil’s total corn harvest for the 2011-12 marketing year is expected to exceed 67-million tons – 2.6-billion bushels. That’s a 13.5-percent increase over last year. The nation typically exports between 15 and 20-percent of their crop.
Another factor weighing on the market – according to the Grains Council – is lower than anticipated domestic usage and exports – which have inundated Brazil with ample stocks. As the U.S. competes to build and defend market share – USGC Chairman Dr. Wendell Shauman says the marketing programming offered by the Council becomes increasingly more important.
Source: NAFB News Service