December 10, 2010

Brazilian corn output may fall on drought

Corn output in Brazil, the world's third-largest producer, may fall as much as 6.1% next year after drought hurt crops, the Agricultural Ministry said.

Farmers will harvest 52.6 million tonnes, down from 56 million tonnes this year, said the ministry's crop-forecasting agency, Conab. The agency had estimated on November 10 a crop of between 51.8-52.7 million tonnes.

Output is set to decline after dry weather interrupted planting in Rio Grande do Sul state, leading crops to develop at an uneven pace, Conab said. Growers may trim the planted area by as much as 2.3%, to 12.7 million hectares, according to the agency.

Soy growers in Brazil, the world's largest grower after the US, will harvest 68.6 million tonnes of the oilseed next year, little changed from this year's 68.7 million tonnes, the ministry said. The estimate was little changed from between 67.7-69 million tonnes on November 10.