Brazil’s second corn crop harvest is almost complete with 95% done as of August 5, according to consultancy AgRural. That’s up from 91% the week prior and 64% the same week last year. In Mato Grosso, the largest state, harvest is already done.
In Mato Grosso and Goias, yields are trending higher than the five-year average at 93.6 bushels per acre. Yields are lower in Parana, Mato Grosso do Sul, and Sao Paulo, averaging approximately 40 bushels per acre.
Northern Parana has the most harvest left with only 75% complete. After having significant heat for this time of year and higher than average precipitation, Parana is expected to have lower temperatures in the coming days with lows of 40º F.
Higher prices
For farmers in Brazil, prices are now higher in the short-term due to continued currency devaluation in the country, even though corn prices dropped in Chicago recently.
“Due to the dollar drop and less availability in the market, corn is bringing 12% more than August of last year, but this will be short-lived because the American crop is coming,” said Edmar Gervásio, an analyst at Parana’s Department of Rural Economics.
Increased production
The second corn crop estimate has increased from 96.7 million metric tons (MMT) to 100.5 MMT, according to Agroconsult. That estimate is 12.4 MMT higher than the estimates from the National Supply Company (Conab).
The significant increase in Agroconsult’s estimate was attributed to 988,000 more acres planted than previously estimated. However, this did not change the projection for Brazil’s corn exports at 42 MMT or 23% less than last year due to increased competition from Argentina.
Soybeans have an opposite export trend. Brazil’s National Association of Cereal Exporters (Anec) forecasts 8.1 MMT of oilseed exports in August alone, which is higher than the 7.6 MMT in August last year.
Anec’s estimate for corn exports in August is 7 MMT, less than last year’s 9.2 MMT.
In Argentina, the Buenos Aires Cereal Exchange has updated corn harvest progress to 96% complete with total output still projected at 46.5 MMT.
