Brazil may not lower 2009 corn production forecast

Brazil's Agriculture Ministry may not reduce its 2009 corn harvest estimation as previously expected after frost in some states inflicted less damage to crops than initially thought, according to a ministry official.

Airton Camargo, head of agribusiness data at Conab, the ministry's crop forecasting agency, said the organisation will most likely maintain its forecast of 49.9 million tonnes when it releases revised estimates next month.

In June 8, Conab had expected frost in Parana and Mato Grosso do Sul states would force it to reduce its forecasts.

Inspectors visited the region this week and found that corn in Parana had already ripened and was not damaged by the frost, said Camargo. Only some crops in Mato Grosso do Sul were damaged, he said.

Camargo said Conab had expected a much bigger loss but most of the grains are nearly developed so they are protected.

The recent frost followed a drought in Centre-South regions in April and May that prompted the government to reduce corn estimates by 15 percent from last year's 58.7 million tonnes.

But a smaller corn production will not prevent growers from meeting its domestic and export demands, said Silvio Porto, Conab's agriculture policy director.

Brazil may export less than seven million tonnes of corn in the crop year ending September, from 6.4 million tonnes sold abroad in the 2007-08 crop, he said.