"Export-happy Brazil may have created a corn shortage for livestock"
By Karen Braun/Reuters on Jan 22, 2016 at 7:31 a.m.
"CHICAGO - A rush to export a record Brazilian corn crop may send domestic prices higher over the next few months which could ultimately drive up poultry prices internationally.
Brazil exported over 11 million tonnes of corn in the last two months of 2015, according to Williams Shipping Agency, more than doubling the volume observed during the same period in 2014. Almost 1 million tonnes of this increase was devoted to North Africa following disappointing Ukrainian and European corn harvests.
Corn cash prices in the interior of Brazil have skyrocketed this month, leading many to sense the anticipation a domestic shortage. Meanwhile, port prices FOB remain at the relatively lower levels of late.
It is not hard to understand the eagerness of Brazilian farmers to aggressively ship their supply overseas while the real is tumbling, especially coming off a record corn crop.
But domestic grain supply is crucial for feed in Brazil's massive livestock industry and JBS SA, the world's largest meat packer.
Brazil is currently the world's leading poultry supplier, second in beef and third in pork, according to the U.S. Department of Agriculture."