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UPDATE 1-Brazil's Anec sees more corn exports, 2017 still tough for traders
November 23, 2017 / 11:27 PM / 19 days ago

UPDATE 1-Brazil's Anec sees more corn exports, 2017 still tough for traders

(Recasts, adding comments from another Anec representative)

SAO PAULO, Nov 23 (Reuters) - Brazilian grain exporters association Anec revised upward its forecast on Thursday for corn exports this year, but commodities traders operating in the country may still see their worse performance in a decade as margins are squeezed amid a bumper harvest.

Sérgio Mendes, director general at Anec, said during an industry event in São Paulo that the association sees Brazil exporting 33 million tonnes of corn this year due to a drought in Eastern Europe. That estimate rose from a forecast of 30 million tonnes released earlier in November.

Although Brazil is expected to export record volumes of soybeans and corn in 2017, it will prove to be a tough year for commodities traders’ financial results, Luís Barbieri, president of Anec, Barbieri said at the same event.

Low prices due to years of record output has required an overhaul of risk management practices, Barbieri said.

“We have to rethink what we are doing,” he noted in reference to Anec associated members. The performance of the Anec companies “may be the worst in a decade,” he said, calling this year’s results “disastrous,” but declining to elaborate.

Anec members include global grain traders Archer Daniels Midland Co, Cargill Inc, Louis Dreyfus Company and Brazil-based Amaggi Group. (Reporting by Roberto Samora; writing by Ana Mano, editing by G Crosse)

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