January 12, 2024

Brazil's CONAB adjusts downward soybean and corn production projections

Brazil's National Supply Company (CONAB), the equivalent of the United States Department of Agriculture (USDA), has revised its outlook downwards for soybean and corn production, attributing the month-to-month reductions to adverse weather conditions, Brownfield Ag News reported.

The downward outlook is due to planting delays and developmental challenges from hot, dry weather in central growing regions and excessive moisture in the south. As the soybean harvest progresses and second crop corn planting begins, further adjustments may occur.

The latest forecast puts Brazil's new soybean crop at 155.269 million tonnes, reflecting a 3% decline from December figures. However, it remains marginally larger by 0.4% compared to the production in 2023.

Total corn production is estimated at 117.604 million tonnes, marking an 0.8% reduction from the previous month. The first crop is projected at 24.385 million tonnes, down 3.7% from December, with both figures registering a 10.9% decrease from the previous year. The second crop corn estimate remains unchanged at 91.235 million tonnes, while the third crop is steady at 1.984 million tonnes.

In response to the lower crop expectations, CONAB has adjusted its export projections for corn and soybeans. Additionally, increased domestic demand for soybean oil in biodiesel production has influenced the revisions. Despite these changes, Brazil is anticipated to maintain its position as the largest exporter of corn.

-       Brownfield Ag News