South America Calling
Alastair Stewart South America Correspondent

Tuesday 01/14/14

Brazilian Corn Outlook

Corn crops in southern Brazil were damaged by hot, dry weather in December but, in compensation, second-crop planted area will now likely grow, rather than decline, Agroconsult, a local farm analytics group, said Tuesday.

Summer corn in Campo Mourao, Parana in Brazil. (DTN photo by Alastair Stewart)

Brazil will produce just 32.1 million metric tons (mmt) of summer corn in 2013-14, down 8% on last year. The consultancy reduced its estimate after a hot, dry spell in Rio Grande do Sul and central Parana that hit corn during key development phases.

The forecast is lower than the Agriculture Ministry's estimate of 32.8 mmt.

Over the last five years, many farmers have stopped planting summer corn, instead planting second-crop corn after soybeans.

However, low prices were expected to cause a decline in both first-crop and second-crop corn area this year.

The first crop followed the script, with area falling 6%, but a late surge in demand for seeds indicates that second-crop area will actually grow slightly, rather than fall, said Agroconsult.

It predicts second-crop area will rise 2% to 22.8 million acres in 2013-2104.

Farmers are very committed to double cropping and the best second-crop option remains corn. As a result, farmers will plant despite wafer-thin margins, Andre Pessoa, director of Agroconsult, told a press conference in Sao Paulo Tuesday.

The original plan of farmers was to use less technology on the second crop, but as stocks of low-tech hybrids dwindled they started buying higher tech seeds during the last few weeks, said Pessoa.

Still, reduced overall levels of technology and the likelihood that the impeccable weather of 2013 will not repeat itself in 2014 prompted Agroconsult to forecast a 7% decline in second-crop production to 44.1 mmt this season.

Alastair Stewart can be reached at Alastair.stewart@dtn.com

(AG)

Posted at 1:52PM CST 01/14/14 by Alastair Stewart
Post a Blog Comment:
Your Comment:
DTN reserves the right to delete comments posted to any of our blogs and forums, for reasons including profanity, libel, irrelevant personal attacks and advertisements.
Blog Home Pages
July  2014
S M T W T F S
      1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31      
Subscribe to South America Calling RSS
Recent Blog Posts
  • Brazil's Soybean Market Firm
  • Brazilian Soybean Exports Slip in June
  • Argentine Soy Farmers in a Tough Spot
  • Brazil Cuts Tariffs on Wheat Imports
  • Rains Slow Brazil's Mato Grosso Corn Harvest
  • Brazilian Non-GM Soy Premiums Ebb
  • Argentine Debt Default and Farmers
  • Corn Ethanol and Brazil
  • Soybeans Leads Brazilian Exports in 2014
  • Argentine Biodiesel Exports to Recover in 2014
  • Brazil's Ag Ministry Raises Corn, Wheat View
  • Brazil to Raise Biofuel Percentage in Diesel
  • Brazil's Lack of Refuges
  • Brazil's Winter Soy
  • Brazil's Second-Crop Corn
  • Brazil's Second-Crop Soy Fail
  • Brazil Announces $70 Billion Farm Credit Plan
  • Brazil Says BSE Case Likely Atypical
  • Brazil Exports Record Volume of Soy in April
  • Brazilian Farmers Take Out Nearly $2 Bln In Silo Financing