The global agricultural market is undergoing a tectonic shift. Brazil, the new kid on the block, is giving the US a run for its money in corn and soybean exports. Recent trends indicate China, once a significant buyer from the US, is now leaning towards Brazil.
Recent USDA data shows the US has sold about 14.4 million metric tons of corn as of September 28. While this is below the average sales pace, it's noteworthy to see China's reduced involvement. They've secured a mere 780,000 tons from the US for 2023-24, a considerable drop from prior years.
On the bright side, demand from other nations is growing. Mexico, for instance, set a record by purchasing 7.5 million tons for 2023-24. If we set China aside, the US corn export sales have surged by nearly 40% from last year.
However, soybeans present a challenge. The USDA foresees a decrease in US soybean exports for 2023-24, and the sales figures for September hit a concerning 12-year low.
Brazil has been setting records. Their corn and soybean exports witnessed tremendous growth in August and September. Remarkably, Brazil has secured 18% of its corn exports to China, marking a dramatic shift in trade patterns.
Looking forward, 2024 could see Brazil enhancing its export prowess even further, with predictions of a bountiful soybean harvest. And while their corn output might witness a slight dip, it will likely remain impressive.
These evolving patterns indicate that the world of agricultural trade is in flux, with Brazil poised to play a larger role and the US re-evaluating its strategies.
Source : wisconsinagconnection