March 19, 2012

Agriculture research firm expects Brazil's 2011-12 corn crop down 

A harvest of 63.26 million tonnes of corn is what an agriculture research firm Safras & Mercado expects for Brazil's current year 2011-12 crop year, down 3.7% from its initial forecast, it said Friday (Mar 16).

Scarce rainfall in southern Brazil during recent months--the result of a La Nina phenomenon--has damaged crops and left expected productivity well short of potential. The losses have been particularly severe in the southernmost states of Rio Grande do Sul and Santa Catarina.

"In Parana [state], on the other hand, farms surprised with a good recovery," Safras & Mercado said in a press release.

Despite the losses in southern Brazil, Safras & Mercado sees the country producing 13% more corn than in 2010-11 and setting a record for output. That gain should come on the back of greater planted acreage, as well as expanded use of improved or genetically modified seeds.