Brazil's soybean yield could inch higher...
Jun 24, 2013
Brazilian farmers starting to say they might not plant near as much second crop corn next year. Prices have hit their lowest point in three years, to roughly $2.50/bushel. The decline is in part a reflection of Brazil's weak currency, the reel, which is at a 4-year low. The other pressure comes from a typical depression in prices that occur every year at harvest. This years second crop will account for 55% of the countries total corn crop, whereas ten years ago it was only about 25%. The value of the crop at this point is well below production costs, which could cause farmers to look at some alternative secondary crops. If they opt for faster maturing crops, they could modify their soybean growing season, possibly planting longer maturing soybeans and skipping trying to harvest during January's rainy season, which could result in higher yields.
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