February 13, 2024

Brazil's crop outlooks revised downward by CONAB, impacting global markets

Brazil's agricultural authority CONAB has revised its projections for soybean and corn production, indicating potential challenges ahead for the country's agricultural sector, Brownfield Ag News reported.

According to CONAB, soybean production is now forecasted at 149.404 million tonnes, marking a decrease of nearly 3.8% from January's estimates. This downward revision is attributed to planting delays and dry weather conditions in certain growing regions during critical developmental stages.

Similarly, Brazil's second corn crop, often sown after soybeans, is anticipated to reach 88.099 million tonnes, reflecting a 3.4% decline from the previous month and a substantial 13.9% drop compared to last year. These setbacks stem from issues encountered during soybean planting earlier in the season.

The combined production forecast for Brazil's three major crops stands at 113.696 million tonnes, potentially marking a 13.8% decrease from the previous year. This includes a first crop of 23.607 million tonnes, down by 13.8% from last year, and a third crop of 1.991 million tonnes, representing a 7.6% decline.

CONAB suggests that these reduced harvests could lead to diminished exports from Brazil, potentially creating opportunities for other major producers like the US.

As Brazil's soybean harvest and second corn crop planting continue, the agricultural sector remains vigilant amid these challenges.

The next set of production estimates from CONAB is scheduled for release on March 12, 2024.

-      Brownfield Ag News