March 14, 2023

Brazilian farmers expected to produce the highest volume of corn in history

Analysts said Brazilian farmers are expected to produce the highest volume of corn in history, despite planting delays in some areas of the country, Nasdaq reported.

According to a poll of 12 analysts, Brazil's total corn production will increase by 11.93% from the 2021/22 cycle to 126.63 million tonnes in the 2022/23 cycle.

Poll results also showed the potential rise in Brazil's total corn output will be driven by a 4.4% increase in planted area and the expectation of higher yields in the season.

Despite ongoing delays in sowing the nation's second crop of corn, which is planted after soybeans are harvested in the same areas, forecasters said the outlook is still favourable. Sowing second corn later means a higher risk of bad weather events before the harvest.

Brazil's second corn accounts for 70%–75% of the country's annual output.

Flavio de França Jnior, an analyst with Datagro, said because of the high prices, farmers are expected to plant second corn. The positive outlook comes from the good prospects for second corn in Mato Grosso, Brazil's biggest farm state.

Joao Lopes, market intelligence analyst at StoneX, said progress in Mato Grosso, the main producer of the second crop, has been at a good pace, so a good crop is expected.

-      Nasdaq