Brazil Selling 700,000 MT Corn to Domestic Market

The government of Brazil announced Friday it was going to sell as much as 700,000 metric tons of corn stock in its domestic market in response to the draught that has hit the southern states of the nation.

States targeted via auctions are Santa Catarina and Rio Grande do Sul,
where a sell of up to 500,000 metric tons of corn will be initiated.

The Brazilian Agriculture Ministry said this: "The measures are a way for the government to supply the market's shortage of the product and help the sector, which faces difficulty due to the smaller crop caused by weather factors,"

Other states in Brazil targets from corn sales are Minas Gerais, Rio de Janeiro and Espirito Santo. Corn sales are focused on those looking to acquire feed for the various meat industries.

The other 200,00 metric tons of corn is slated to be sold directly to Rio Grande do Sul and Santa Catarina, which have been hit the hardest by the drought. There the fixed price will be $12.18 for each 60-kilogram bag of corn feed.

Included in the fixed price sale will be agricultural cooperatives, along with buyers of feed for meat producers.

Corn farmers in the U.S. could boost production by 15 percent over 2011 as a result of the drought in Brazil and in Argentina. Corn exports in the U.S. are expected to rise in response to the lower supply in the region.