Brazil overtakes the U.S. to become the top global corn exporter

Date:09-01-2023

Bloomberg writers Michael Hirtzer and Dominic Carey reported that, ″For more than half a century, US farmers dominated the international market for corn, shipping more of the critical crop than any other country to feed the world’s livestock, fill its stockpiles and manufacture its processed foods.

″No more. In the agricultural year ending Aug. 31, the US handed the corn-exporting crown to Brazil. And it might never get it back.

″The US Just Lost the Corn-Exporting Crown,″ by Michael Hirtzer and Dominic Carey. Bloomberg News (August 31, 2023).

″In the 2023 harvest year, the US will account for about 23% of global corn exports, well below Brazil’s nearly 32%, US Department of Agriculture data show. Brazil is seen holding onto its lead in the 2024 planting year that begins Sept. 1, too. Only once in data going back to the Kennedy administration did America drop out of first place before: for a single year in 2013 following a devastating drought.

″The US corn-exporting industry has never before spent two back-to-back years in second place — until now.

Hirtzer and Carey pointed out that, ″Losing its lead in corn exports may feel familiar to American farmers, who in the last decade have also relinquished the top spot in both soybean and wheat exports.″

″The US Just Lost the Corn-Exporting Crown,″ by Michael Hirtzer and Dominic Carey. Bloomberg News (August 31, 2023).

The Bloomberg article explained that, ″To be sure, the shift in corn shipments isn’t all that unexpected: For years, the federal government has been incentivizing the use of domestically grown corn for ethanol, which is added to gasoline.  About 40% of US corn goes to supply domestic mills making ethanol for use as a transportation fuel — though that demand will be at risk as more electric vehicles hit the road. When mills aren’t buying, the US corn crop can also be stored in massive silos or grain elevators for future use for years at a time, awaiting better prices.″

Hirtzer and Carey also indicated that, ″For major agricultural buyer China, Brazil also doesn’t come with any of the US’s political baggage. Last year, China inked an agreement to purchase Brazilian grains to reduce its dependence on the US and replace supplies from Ukraine cut off by the conflict. Brazil’s first shipment of corn under the new deal set sail in November.″

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