In this morning's World Supply & Demand Report, USDA unexpectedly raised its estimate of the Brazilian corn crop by 1 million metric tons (MMT) to 62 MMT. Traders expected USDA to lower the crop by around 600,000 metric tons (MT) from last month.
Regarding the Brazilian corn crop, USDA provides this explanation: "The month-to-month increase is attributed to an increase in the estimated area of second-season corn. Total harvested area is forecast at 15.3 million hectares, up 0.3 million from last month and up 1.5 million or 11% from last year. Yield is forecast at 4.05 tons per hectare, which is slightly above the 5-year average of 3.95 tons per hectare. The southern states of Rio Grande do Sul and Parana received below-average rainfall from November through February, which reduced yield prospects for main-season corn. Record area and favorable yield prospects for second-season corn, however, are expected to fully offset main-season losses. Output of second-season corn is forecast to comprise about 42% of Brazil’s total corn crop, compared to 38% last year."
"Planting for second-season corn began in January, and the first week of March is considered the cut-off date for
planting. Current conditions for the second-season crop are good. The greatest potential risk to the second-season crop would be an early end to rains in April," adds USDA.
- Paraguay: Early Harvested Soy Yields are Low
- Argentine Soy Estimate Lowered
- Brazil Soybeans: Estimated Yield Continues to Fall
- Australia: Record Cotton Production Still in the Forecast
- Australia: Higher Prospects for Wheat Crop Production