January 6, 2020

Lower corn harvest seen in one of Brazil's top grain-producing states; tight supply looms for country 

Brazil's third-largest grain-producing state, Rio Grande do Sul, is expected to have lower summer corn production due to lack of rains in recent weeks. This comes in the wake of a looming corn supply tightness in the country in early 2020, Reuters reported.

According to Reuters, corn produce in the state is important to meat producers in the southern parts of Brazil during the first months of the year as the country's main corn crop comes later in the year with the second crop.

Rio Grande do Sul, along with few other Brazilian states, plants most of its corn in the summer, while the rest plant mostly over the winter, leaving the main summer crop for soybean cultivation.

While the state's agronomists are still evaluating the negative impacts of the recent dryness on the corn crop, the initial estimated production of 6 million tonnes will most likely be revised downward, the report said.

Alencar Rugeri, the technical head of the state's agricultural research body, Emater, explained that rain is needed in the flowering stage of the corn plants.

Brazil faces a possible corn supply tightness early this year after record 2019 exports and strong demand from the pork and poultry industries.

Because of the foreseen corn shortage and the consequent higher local prices, meat processor JBS JBSS3.SA intends to import corn early in the year, as per the Reuters report.