June 10, 2009

Brazil may cut this year's corn output forecast for the third time as a frost in Centre South states damaged the crop following a drought, an Agriculture Ministry official said.

Corn farmers may harvest less than the 49.9 million tonnes forecast announced, as frost in Parana and Mato Grosso do Sul states have damaged the crop in the past two weeks, said Silvio Porto, agriculture policy director at the ministry's crop forecasting agency.

Before that, the corn crop has already suffered from a severe drought, but it is still too early to know the extent of the damage, Porto said.

The frost may cause Brazil to harvest nine million tonnes less of corn this year, but it is not expected to prevent farmers from supplying domestic and overseas demand, he said.

But Brazil may export less than seven million tonnes of corn in the 2008-09 crop year, he said.