CONAB makes more cuts to Brazil’s corn crop
Brazil’s equivalent of the USDA has again lowered its second crop corn estimate due to a variety of weather issues.
CONAB now projects second crop production at 60.322 million tons, a drop of 9.9% on the month and 19.6% on the year following planting delays, hot, dry weather during the growing season, and a few late frost/freeze events. Brazil’s second crop is the source of most of their exports, so this will likely mean at least some increase in global demand for U.S. corn.
The total crop is seen at 86.650 million tons, down 7.2% from July, 15.5% below a year ago and well short of the early expectations for a crop of more than 100 million tons. For the first crop, primarily used for domestic livestock feed needs, production is pegged at 24.898 million tons, 3.1% less than last year, while the third crop is currently projected at 1.43 million tons, a decline of 5% from a month ago and 22.4% from a year ago.
CONAB says soybean production was a record 135.978 million tons, an increase of 8.9% from last year.
The USDA’s next set of estimates for Brazil is in the monthly supply and demand report, out Thursday at Noon Eastern/11 Central.