Brazil Crop Production Preview
The calendar turning over to September marks the beginning of the planting season for first-crop corn and soybeans in Brazil, and the end of second-crop corn harvest. Trendline yields in Brazil have been on a steady rise over the course of the last 10 years, and there are a few key areas to monitor as the crop year progresses. Moreover, Brazil is facing one of the worst droughts in nearly 40 years, and we will analyze how that may affect projected production.
Soybean planting in the key Central-West region of Mato Grosso is set to begin next, as the remainder of the second crop corn harvest is finalized. Brazil’s first crop corn production accounts for only 27% of their total production, and is predominately used for domestic consumption. Second-crop production accounts for 73% of total production, and represents their export capacity while supplies in the Northern Hemisphere (U.S. predominantly), are depleted. Any delays in second-crop corn harvest stand to inhibit early soybean planting progress in the key Central-West region of Brazil.
Production Areas:
The Central-West region of Mato Grosso is the most important area to monitor as it accounts for 33% of total corn production, and 26% of total soybean production. Moreover, this same region is where the remaining second-corn harvest remains to be completed. The second most important region to monitor would be the Southern regions of Parana, and Rio Grande do Sul. Soybean planting in Parana will not start until mid-late October, but accounts for roughly 26% of Brazil’s total soybean production.
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