Grain: World Markets and Trade, April 2005

Grain: World Markets and Trade
Foreign Agricultural Service Circular Series
FG 04-05
April 2005

After reaching record levels last year, Brazil’s grain exports are now expected to drop to the lowest level in 5 years. Corn exports, which had surged because of expanded production, are now dwindling due to a drought-affected crop and expanding domestic demand. Shrinking supplies and high prices have made Brazilian corn uncompetitive in the world market. The rapid growth in domestic demand, led by the poultry and pork sectors, has outstripped production this year and will even necessitate significant corn imports. Brazil’s history as a net corn exporter may be coming to an end if production fails to keep pace with demand growth.

Wheat exports have disappeared this year because prices are once again uncompetitive in Mediterranean markets, especially against larger supplies of low and medium quality wheat from the Black Sea region. Sorghum exports of nearly 400,000 tons last year were likely a one-shot deal because of a return to normal, smaller demand from the EU-25. Transportation costs from Brazil relative to commodity value make significant wheat and sorghum exports unlikely in most years.

Wheat Commentary	[Text]	[Adobe Acrobat Format]
Wheat Data Tables	[Excel Spreadsheet Format]	[Adobe Acrobat Format]

Rice Commentary	[Text]	[Adobe Acrobat Format]
Rice Data Tables	[Excel Spreadsheet Format]	[Adobe Acrobat Format]

Coarse Grains Commentary	[Text]	[Adobe Acrobat Format]
Coarse Grains Data Tables	Excel Spreadsheet Format]	[Adobe Acrobat Format]

Brazilian Grain Exports Drop