WORLD
GRAIN
OPENING
markets
Brazil’s short crop may lead to U.S. imports
B
Courtesy of U.S. Grains Council
razilian regulators paved the
way for imports of U.S. corn following a short crop, according
to industry sources.
The National Biosafety
Technical Commission, known as CTNBio,
met and authorized the outstanding biotech
products needed to open the Brazilian market
for U.S. corn exports.
While imported corn may still be subject to
traceability measures given the expectation that
some products would only receive approval for
use as food and feed and not environmental
release, local industry is expected to bring in as
much as 1.5 million metric tons in the coming
months to meet their feed grain needs.
Brazil has faced a significant shortfall in its
2015/2016 corn crop, particularly in its sec-
ond winter crop, with an estimated 16 million
metric tons fewer produced this year than
in 2014/2015. This has halved exports and
prompted imports from regional producers
Argentina and Paraguay. To date, the United
States has not been able to fill the demand
because of lack of approvals of some biotech
products used by U.S. farmers.
The U.S. Grains Council (USGC) staff and
consultants in the organization's Washington, D.C., office and the region have worked
closely with biotech companies, Brazilian
industry and the U.S. Department of Agriculture (USDA) as permission was being
sought for U.S. imports and will continue to
engage to ensure coming trades are conducted
successfully.
Last week, Cary Sifferath, USGC senior
director of global programs, and Alfredo
Navarro, the Council's consultant in Brazil, traveled to Sao Paulo to meet with key
industry organizations and USDA Foreign
Agricultural Service (FAS) staff in Brazil to
assess the situation and provide information
on the U.S. corn market.
The effort to allow access for U.S. imports
shows the growing importance of policies to
enable trade in the absence of synchronous
biotechnology approvals.
The coming trades between countries that
typically compete for corn sales also shows
the fluidity and diversity in the global grain
market, in which U.S. producers are typically
able to cover grain needs from even large corn
producers when crops are short.
In turn, the United States typically imports
a small amount of corn from Brazil each year
based on logistical costs and other factors. In
2012/2013, following a major drought, the
U.S. was a large importer of corn and Brazil's
fourth largest customer.
Brazil approves imports of GMO corn
T
By Sergio Alvarado
SP Global Platts
he Brazilian government approved Thursday the
imports of three varieties of genetically modified
corn from the US for feed use, but not for planting,
a Brazilian market source said Friday.
The source added US GMO corn imports
cannot start immediately, as the Brazilian government opened
a 30-day period to receive and analyze complaints against the
decision. Importers are already negotiating deals for US corn
and are waiting for the decision to be official, which could
come after the 30-day period if the approval is not overturned
by protests against GMOs.
Other market participants were optimistic about the approval, expecting as
much as 1.5 million mt of US corn to
reach Brazil in the coming months
to meet their feed grain needs.
"We might start seeing some
interesting new cargo reaching north
Brazil by the end of 2016," a South America grain
trader said. "Brazil buyers are already asking for
some offers on CIF Itaqui and CIF Vitoria port."
Brazil, the main US corn competitor, has faced
a significant shortfall in its 2015-16 corn crop, producing 16 million mt less than previous year.
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