Bird flu puts pressure on corn market in Brazil

Published May 20, 2025

Tridge summary

A recent analysis by Grão Direto highlights the impact of the first bird flu case in a Brazilian commercial farm on the corn market. The disease is likely to reduce short-term demand for corn due to temporary bans on chicken meat exports to several countries, including China. This reduction in demand is attributed to the poultry industry's significant consumption of corn for feed. However, if the bird flu is effectively controlled and the embargoes are temporary, the impacts are expected to be limited. In the United States, corn planting is progressing rapidly despite drought conditions in some areas. The complexity of international corn movement between the United States, China, and Brazil is adding to the market's complexity. The USDA reported the sale of 2.75 million tons of corn from the 2025/26 harvest, but there is a notable lack of significant purchases by China. Brazil is projected to see an 11% growth in its second corn harvest, which is primarily for export, leading to an anticipated surge in the global market supply and a potential downward trend in corn prices.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The confirmation of the first case of bird flu on a commercial farm in Brazil had an immediate impact on the corn market. According to an analysis released on Monday (20) by Grão Direto, the temporary suspension of chicken meat exports to markets such as China, the European Union, Argentina, Mexico, Chile and Uruguay, especially the 60-day ban imposed by China, should reduce demand for corn in the short term. “The poultry chain is a major consumer of corn for feed. The drop in exports and poultry production tends to reduce this demand, putting pressure on the prices of corn, chicken and eggs,” the analysis points out. The expectation is that, if the disease is effectively controlled and the embargoes remain temporary, the impacts will be limited. However, a scenario of bird flu spreading could generate more lasting effects. In the United States, corn planting is progressing at a fast pace. By May 11, 62% of the expected area had already been planted, 15 percentage points ahead ...
Source: Agrolink

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