Brazil raises corn forecast after rain boosts yields

Corn output in Brazil, the world's third-largest producer after the US and China, will increase more than previously expected after rainfall helped the grains develop, boosting yields, the Agriculture Ministry said.

Farmers will harvest 54.1 million tonnes of corn this year, more than a March 9 estimate of 51.4 million tonnes, the ministry's Conab forecasting agency said. Production will climb from 51 million tonnes harvested last year.

Above-average and well-distributed rain in the centre-western and southeastern states of Minas Gerais, Parana, Mato Grosso, Mato Grosso do Sul and Goias last month helped the crops mature, the agency said in the report.

Above-average rain is expected to continue in the states of Parana, Rio Grande do Sul and in southern Sao Paulo in April, May and June, which will likely boost corn yields further, the agency said.

Meanwhile, soy output will rise to 67.4 million tonnes, less than the agency's 67.6 million-tonne forecast last month, Conab said. Last year, farmers harvested 57.2 million tonnes. Brazil is the world's second-largest grower of the oilseed after the US.