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Corn production in Brazil forecasted to decrease by 8%qrcode

Apr. 11, 2014

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Apr. 11, 2014

Corn production in Brazil forecasted to decrease by 8%

Brazil’s corn production had a considerable fallback if compared with last year. This occurred due the low prices of the cereal, that in many regions were below production cost. According to CONAB, Brazil will produce 75.2 million tons, a decrease of 8% compared to last season. However, is possible that the production happen to be lower than the forecasted value, considering that the mainly producers of second crop corn decreased their seed areas. It’s reported that the total planting area of corn in 2013/14 season is 15.127 million hectares.
Brazil possesses two crops of corn in one agricultural year. The first crop is being harvest right now, while the second crop was recently seeded and it is found in a vegetative phase. The first crop is cultivated in almost all the Brazilian’s states, however it is more concentrated in the states of Minas Gerais, Paraná and Mato Grosso do Sul. 

The first crop presented satisfactory development on the most important states, but some regions presented a production break due to the lack of rain. The states of Minas Gerais, Paraná and Rio Grande do Sul already harvested 65% of their whole seeded area.
The seeding of the second crop was concluded until the second half of March. The field developing is considered regular, mainly on the state of Mato Grosso, the biggest producer. Even with 40% of the fields on the state been seeded out of the ideal window to the culture, so, it may suffer yield losses in the end of the cycle due to the dry weather. Mato Grosso must be responsible for the production of 15.23 million tons, 32.42% lower than last season.
On Argentina the corn’s harvest is proceeding, registering 15% of the seeded area. The yield of the harvested fields until now are above 6.0 tons/hectare according the Bolsa de Cerelaes de Buenos Aires, which is also projecting a production of 23.5 million tons for the country. This culture also suffered drought and high temperature, but it has been presenting good recovering since February with more favorable weather conditions. The total planting area of corn in 2013/14 season is 3.57 million hectares.
Therefore, for corn we will have a considerable decrease in production, mostly due to the area’s reduction caused by the competitively with the soybean, allied to the cereal’s low prices on the last season.

The ODS – Serviços em agronegócio is a consulting company in the trading of corn and soybeans, including the dissemination and interpretation of data for decision-making in the market and risk management. ODS also executes the trading in the physical market of agricultural commodities throughout Brazil. The company can be reached at ods@osdagronegocio.com.br

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