February 7, 2012

Brazil's summer corn yield seen lower than expected

Brazil's summer corn harvest is seen at 35.45 million tonnes, down 3.8% from January's forecast by local consultancy Celeres due to drought damage in the southern grains belt.

Nevertheless, the latest outlook reflects a 7.3% rise from Brazil's previous summer corn crop as a large expansion in planted acreage offsets lower yields due to the drought.

Brazilian grains farmers harvest a main summer corn crop and a smaller winter crop, which Celeres forecasts at 25.14 million tonnes.

Summer corn had been 8% harvested as of last Friday (Feb 3), up 1.7 percentage points from a week earlier. Farmers have started planting winter corn mainly in the southern state of Parana, Brazil's top corn producer, and the central-western state of Mato Grosso.

Celeres noted that heavy rains in Mato Grosso and neighbouring Goias state are causing delays in planting of winter corn.

"For now, the situation isn't very worrisome, but if delays persist, losses in productivity could occur at later stages," Celeres said.