https://en.sputniknews.africa/20230902/us-loses-title-of-top-corn-exporter-to-brazil-1061808831.html
US Loses Title of Top Corn Exporter to Brazil
US Loses Title of Top Corn Exporter to Brazil
Sputnik Africa
Analysts note that Brazil's rise as the corn export leader was predictable, due to its making efforts in the production of the crop. According to the Center... 02.09.2023, Sputnik Africa
2023-09-02T16:26+0200
2023-09-02T16:26+0200
2023-09-02T16:26+0200
brazil
united states (us)
brics
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de-dollarization
china
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During the 2023 harvest season, the United States lost its lead in world corn exports; the export leadership now belongs to Brazil, a member of the BRICS group, indicates an analysis article published by Western media.According to data from the United States Department of Agriculture, during this year's harvest season, Brazil concentrated 32% of global exports of this crop, while the US only accounted for 23%. It is estimated that Brazil will also maintain its leadership in the 2024 campaign, which began on September 1.Since the Kennedy Administration, the United States has lost its lead as a corn exporter only once. It was in the year 2013 due to a great drought.Brazil's rise is not unexpected: since 2013, it has taken first place from Washington as a soybean exporter, a year before the European Union (EU) and Russia overtook it as wheat exporters.According to analysts, there are several reasons why the North American country is losing its leadership in grain exports. The first is the strengthening of the dollar that makes direct purchases from the United States more expensive.Additionally, the federal government has prioritized the domestic use of corn for the creation of ethanol. When producers do not buy the corn, it ends up being stored waiting for better prices.Another factors are the increase of the prices in the United States, specially in transportation costs, as well as droughts in important cultivation areas such as the Mississippi River.Brazil, on the other hand, has many advantages, such as two harvests a year and the modernization of its ports, which has reduced transportation costs.On the other hand, the purchases by China, one of the main buyers of US corn, have also influenced Washington's place in the global market. Although Beijing has continued to be one of the largest importers of products from the United States, this year it also bought 902,000 tons of Brazilian corn, unlike the last year, when it bought nothing.
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brazil, united states (us), brics, european union (eu), export, economic growth, de-dollarization, china
brazil, united states (us), brics, european union (eu), export, economic growth, de-dollarization, china
US Loses Title of Top Corn Exporter to Brazil
Analysts note that Brazil's rise as the corn export leader was predictable, due to its making efforts in the production of the crop. According to the Center for Advanced Studies on Applied Economics of Sao Paulo, Brazil had exported more than the United States also in 2013-2014, when the US production was impacted by intense dry weather.
During the 2023 harvest season, the United States lost its lead in world corn exports; the export leadership now belongs to Brazil, a member of the
BRICS group, indicates an analysis article published by Western media.
According to data from the United States Department of Agriculture, during this year's harvest season, Brazil concentrated 32% of global exports of this crop, while the US only accounted for 23%. It is estimated that Brazil will also maintain its leadership in the 2024 campaign, which began on September 1.
Since the Kennedy Administration, the United States has lost its lead as a corn exporter only once. It was in the year 2013 due to a great drought.
"The US corn-exporting industry has never before spent two back-to-back years in second place, until now," the western media noted.
Brazil's rise is not unexpected: since 2013, it has taken first place from Washington as a soybean exporter, a year before the European Union (EU) and
Russia overtook it as wheat exporters.
"At its peak, the US exported 78% of its annual wheat production, 54% of its soybeans and 45% of its corn; in 2024, those figures are forecast to slip to 40%, 43% and 14%, respectively. It’s also making up a smaller share of global crop exports overall", highlights the media portal.
According to analysts, there are several reasons why the North American country is losing its leadership in grain exports. The first is the strengthening of the
dollar that makes direct purchases from the United States more expensive.
Additionally, the federal government has prioritized the domestic use of corn for the creation of ethanol. When producers do not buy the corn, it ends up being stored waiting for better prices.
Another factors are the increase of the prices in the United States, specially in transportation costs, as well as droughts in important cultivation areas such as the Mississippi River.
Brazil, on the other hand, has many advantages, such as two harvests a year and the modernization of its ports, which has reduced transportation costs.
"Even if the US corn sector regains the top exporting spot for a year or two in the near term, given all its obstacles in the global market compared to Brazil, it’s unlikely to recapture the crown in the long term," the analysis forecasted.
On the other hand, the purchases by China, one of the main buyers of US corn, have also influenced Washington's place in the global market. Although Beijing has continued to be one of the largest importers of products from the United States, this year it also bought 902,000 tons of Brazilian corn, unlike the last year, when it bought nothing.
