Smithfield to Import Brazilian Corn

But a report from MarketWatch cites a consultant who reported that corn at Brazilian ports is now selling for $290/metric ton compared with $345/metric ton on the US Gulf Coast. Shipping costs from Brazil add another $30-$40/metric ton to the cost.

Brazil anticipates a record crop this year of nearly 70 million metric tons, less than a quarter of the usual US production of more than 300 million metric tons. The US crop is being seriously damaged, though, by hot, dry weather in the nation’s corn-growing regions.

Other food producers have not revealed plans to import corn from Brazil or elsewhere, although Tyson Foods Inc. (NYSE: TSN), Hormel Foods Corp. (NYSE: HRL), and Pilgrim’s Corp. (NYSE: PPC) are likely candidates for consideration.

Shares of Smithfield are up 0.5% in the early afternoon today, at $18.26 in a 52-week range of $17.75-$25.12.

Paul Ausick