October 29, 2004

Corn Crop in Brazil May Be Smaller This Year

Brazil may not be much of a corn export competitor this coming year, according to a US Grains Council representative who closely monitors the market in Brazil.

According to Alfredo Navarro, the Council's representative in Brazil, many factors are affecting farmers' decisions on what to plant this year. They include an elevation in the cost of fertilizers and a lack of soil moisture in most of Southern Brazil.

Moreover, most farmers have not been able to obtain financing at subsidized interest rates. An accumulation of farming produce in Central Brazil has also caused the price of corn to fall significantly, thereby making farmers less likely to invest in growing the commodity.

"All of these factors combined indicate lower planted corn acreage for the new summer crop in Brazil," Navarro said. "It is estimated that the planted area for the summer corn crop will be 2-5 percent smaller than the 2003/04 crop, totaling 9-9.3 hectares."

Over the last three years, Brazil has exported 3.5 - 5.5 million metric tons (138 - 217 million bushels) of corn.