A key foreign trade foundation in Brazil has doubled its forecast for the country's trade surplus this year because of a surge in iron ore prices, the foundation's chief economist told Reuters.

Funcex, a private institution that aims to develop Brazil's foreign trade, sees Brazil's 2010 trade surplus at $15 billion, 50 percent higher than a previous forecast set in March, Fernando Ribeiro said in an interview.

Brazilian mining giant Vale said in March it had implemented a more flexible pricing system for iron ore, shifting from a decades-old benchmark system amid reports it is seeking to more than double ore prices in 2010.

"The readjustment that is being anticipated is much bigger than what people could have imagined previously and this will cause a much greater growth in exports than we had expected," Ribeiro said.

Brazil posted a lower-than-expected trade surplus in March as exports in Latin America's largest economy continued to feel the pinch from an only tepid recovery in the global economy. (Reuters)