Brazil Became the World’s Top Corn and Soy Exporter

Brazil has become the world’s largest exporter of corn and soybeans as the size and quality of the US crop has fallen amid drought, and is close to overtaking the US to become the world’s largest exporter of cotton.

As Bloomberg writes, the difference in cotton exports from the two countries is sharply narrowing amid Brazil’s high season, adding fiber to a growing list of crops where the US is losing dominance.

Brazil became the largest exporter of corn in the 2023 season and the leader in soybean exports 10 years ago. Russia and the European Union overtook the US in wheat exports.

The United States and Brazil are the world’s largest cotton exporters, accounting for more than half of the world’s supply. The U.S. is expected to export 12.5 million bales in the 2023-2024 season, but this estimate is likely to be lowered when the USDA updates its forecast on September 12. Brazil is expected to ship 11.25 million bales.

Analysts expect the USDA to lower its export forecast due to the drought that has hit the crop and worsened fiber quality.

Brazil is expected to continue to increase cotton production and exports in the coming years. With corn prices falling, farmers may decide to shift some of their second crop area from corn to cotton. At current prices, margins in Brazil are much better than those of US farmers.

Tags: corn, Brazil, soybean, crop forecast