January 16, 2007

Brazil corn doing well

Currently, the outlook for the 2006-07 Brazilian corn crop looks excellent.

Brazil's corn production for 2006/07 is forecast at 42.0 million tonnes, unchanged from last month, and up 0.3 million from last year.

Summer corn planting is nearly over and adequate rains and warmer weather have facilitated crop development in Parana, Brazil's largest corn-producing state. Nearly all summer corn-growing regions have experienced good weather, except for Sao Paolo, which faced some dryness in November.

Brazil's largest summer corn-producing states are Parana, Minas Gerais, and Rio Grande do Sul, which account for approximately 19, 12, and 11 percent, respectively, of the total corn crop.

High corn prices could influence farmers to plant a bigger safrinha (winter) corn crop and also boost yield due to increased fertiliser sales. The recent increase in corn prices, however, arrived too late to have much effect on the currently planted summer crop.

The country has also been harvesting soybeans ahead of normal in Mato Grosso, which would imply an earlier planting of the winter corn (which follows soybeans), thus resulting in higher yield prospects.

Winter corn typically accounts for 25 percent of Brazil's total corn area and 23 percent of the total corn production.