La Niña phenomenon begins to pose a threat to corn shipments from Brazil and Argentina

Published 2024년 10월 21일

Tridge summary

Corn production in South America is under threat from high freight costs, La Niña, and adverse weather, leading to price hikes. Despite these challenges, Brazil and Argentina are boosting corn exports to China, with Brazil enjoying record production and competitive pricing, though it faces drought issues. Argentina might cut corn acreage due to grasshopper infestations. La Niña could affect yields, but slight production increases are forecasted by the USDA for both countries. Global corn dynamics are influenced by reduced production in Ukraine and southeastern Europe, and declining Russian exports. US corn exports to China have dropped due to lower Chinese demand and efforts to boost domestic production, even as Chinese and US corn production are expected to hit record highs. Hurricanes have recently improved US transportation costs by enhancing Mississippi River conditions.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

High freight costs for shipping corn to South America, the development of La Niña and adverse weather prospects are threatening corn production in the region, causing prices to rise. For now, however, producing countries Brazil and Argentina are enjoying a giant leap to export 17 million mt of corn to China, up from 2 million mt in 2022, BRS Dry Bulk reports. Brazil’s recent record corn production has allowed the country to offer competitive prices, making it China’s largest trading partner, while cutting into the US’s market share. However, Brazil is experiencing problems due to an ongoing severe drought. Brazil’s National Supply Company, Conab, expects a corn crop of 120 million mt, up 3.5% year-on-year. Meanwhile, Argentina’s corn acreage may decline as farmers favor soybeans amid fears of a possible resurgence of a grasshopper infestation. The likely impact of La Niña will persist through the main crop growth period from December to February. This could put significant ...

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