Brazil, Argentina Reforms Signal Urgent Need For Strong Trade Policies

The recent changes in both the Brazilian and Argentine governments are highlighting their interests in becoming pro-business – and in agriculture’s case, pro-trade. This change in attitude from the largest South American corn producing countries is creating urgency in the United States for the completion of the two multilateral trade agreements that are still pending, the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (T-TIP).

MAIZALL Leaders Meet With U.S. Officials in Washington

Leaders from MAIZALL, the international alliance for maize, were in Washington this week for discussions with senior U.S. officials from the Department of Agriculture, State Department and Office of the U.S. Trade Representative regarding ongoing cooperation with the governments of Argentina and Brazil on market access for crops derived from biotechnology. 

U.S. Competitors Face Barriers Too; Brazil Experiences Difficulty Entering China Corn Market

After 30 years of at or near double digit economic growth, China’s capacity to continue increasing domestic corn and feed grain production is believed to be below projected consumption growth. The demand potential is clearly there. Recent trade disruptions affecting in the export of U.S. corn and distiller’s dried grains with solubles (DDGS) exports to China, have driven Chinese corn prices sharply above world market levels. But U.S. competitors such as Brazil also face barriers in entering this market.

Update: Brazilian Corn Prices Drop with Harvest

As the summer corn harvest ends, total corn production in Brazil has exceeded initial expectations, causing prices to drop. Many traders believed, however, that prices would increase, which resulted in fewer sales made at the beginning of the year. As such, export volumes are low as a large corn crop enters the market.

Production for the summer crop is nearly complete at 32.2 million metric tons, with 100 percent of the crop harvested in southern and central parts of the country. Total production expectations are now estimated at 75 million tons.

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