Brazilian corn exporters are alarmed by the financial problems of the largest grain importer, Iran

The financial difficulties of Iran’s Modalal Group, the country’s largest private grain importer, have caused serious concern among Brazilian corn exporters, Fastmarkets reports.

Iran’s Ministry of Agriculture has assured that supplies of feed ingredients, including grains, will continue despite the company’s problems and the suspension of some imports. But the market fears disruptions, as Iran is a key destination for Brazilian corn.

The situation has worsened after new EU sanctions have made it more difficult for Iran to access oil revenues. As a result, the Central Bank of Iran is unable to provide importers with the currency to pay suppliers in a timely manner, which has led to significant delays in the import of goods.

On September 29, the Council of the EU renewed sanctions against Iran in response to its intentions to resume uranium enrichment. The assets of the Central Bank of Iran and a number of large commercial banks remain frozen. Although the ban on oil and oil products imports to the EU has not been a dramatic change for the market, its impact on the country’s financial capabilities is clear: Modalal Group currently has unpaid foreign exchange liabilities of 1.3 billion euros.

According to market sources, Behshahr Oil — a company that is presumably part of the Modalal group — has stopped production. The company has not received payment from the Central Bank of Iran, NIOC and the Commercial Bank of Iraq for the import of 2.5 million tons of corn, 900 thousand tons of barley, 350 thousand tons of raw sugar, 450 thousand tons of palm oil and 550 thousand tons of soybean meal.

Problems are also confirmed in logistics: 21 ships with approximately 1.2 million tons of corn, oilseeds, sugar and meal are idle in the port of Bandar Imam Khomeini. About 20 more ships are headed to Iran — and these cargoes have also not been paid for.

Iranian traders admit that payment delays are a common practice for the country.

“With Iran, there are always problems with payment — we also face this. If the importer is private, there are usually more problems. If it is a state-owned company, there is a lot of bureaucracy, and payments come very late, sometimes a month or even two. These risks are always present. Delays are a constant problem,” Fastmarkets traders were told.

Brazilian exporters are closely watching developments, says Angela Fagundes, a strategist for grain and oilseed research. About 400,000 tons of corn are already waiting to be shipped to Iran. If the situation is not resolved soon, exports in late December and early 2026 could be at risk.

“Iran usually increases purchases of Brazilian corn from July, but this year the country has been an active buyer throughout the year. If the situation drags on, it could lead to a decrease in overall exports. It is not yet clear how long it will take to resolve the problem,” she notes.

According to Fastmarkets, Iran bought 7.4 million tons of Brazilian corn from January to November 2025 — twice as much as a year earlier. In January alone, shipments reached 1 million tons, or about 30% of Brazil’s monthly exports.

Analysts emphasize: Modalal Group’s difficulties may affect not only Brazilian traders.

“Brazilian corn exports in 2025 are largely due to Iran, as many importers, especially in Asia, have reoriented to the United States. The collapse of a large company is always a negative factor – not only because of the cargoes that have already been purchased or shipped but not yet paid for, but also because of the loss of market confidence in other similar companies,” said Daniele Siqueira, chief analyst at AgRural.

Among the risks are possible disruptions for Iranian buyers themselves, who will not receive cargoes until they are fully paid for, despite the country’s critical dependence on imported agricultural goods.

Iran is the seventh largest importer of corn in the world, with Brazil providing up to 95% of supplies to the country. Iran is also an active importer of barley, wheat and soybean meal.

Tags: Iran, corn, Brazil