April 11, 2012
Brazil expects 13% increase for corn crop
Brazil anticipates a 13% increase in its winter corn crop to about 2.5 million bushels while the South American nation's soy crops are dwindling due to drought and heat-related problems.
Brazil's soy crop is expected to come in 13% lower. Brazil's agricultural reporting service, Conab, said "favourable weather in central-western states such as Mato Grosso should allow for growers to make the most out of record planting."
By contrast, the soy-intensive states of Rio Grande do Sul and Parana were hit harder by the heat and drought during the recent South American summer and soy suffered accordingly.
Des Moines commodity trader Tomm Pfitzenmaier of Summit Commodities noted "the winter corn crop is what the Brazilians use for exports, so the world will have that extra corn available later this summer too."
While the May contract for US corn has held at US$6.30 per bushel on the Chicago Board of Trade, the November contract that prices this year's crop, has slumped to US$5.46 with some predictions of a below-US$5 price later this year because of expected large supplies from record US plantings and more competition from foreign corn feedstock wheat.
