Brazil's winter corn crop expected to rise to 67 million mt: analyst

02.06.2017

Brazil's winter corn crop in 2016/17 will climb to a record of 67 million mt or more, boosted by high yields in the most important producer state, Agroconsult chief Andre Pessoa said Thursday.

The volume compares to 64.6 million mt projected by Agroconsult, a leading local consultancy, in late March, and to 40.8 million mt in the 2015/16 winter crop, hit by unfavorable weather.

Harvest of Brazil's winter corn crop, cultivated as a second crop immediately after the soybean summer crop, has already started in a few regions and should gain pace in coming weeks.

"Weather has been excellent in Mato Grosso, leading to high productivities," said Pessoa, referring to the country's largest grains producer state.

Pessoa stressed the winter production can be even higher than the current estimate, depending on the weather until the end of the season.

As for the summer corn crop, Agroconsult pegged the harvest at 30.9 million mt, up from 30.4 million mt in the March forecast and 25.8 million mt last year.

Corn exports in the current season will reach 32.5 million mt, Pessoa said during an event organized by the exchange B3 in Sao Paulo. The volume may rise to 35 million tonnes if the real weakens further against the US dollar.

Farmers' sales accelerated in the past two weeks, after months at a standstill. Political turmoil recently decreased the value of the local currency, stimulating new deals for the current crop.

Pessoa estimated 23 million-24 million mt of corn earmarked for exports have already been sold by farmers, compared to 19 million mt in mid-May.

If the US dollar strengthens from the current level of Real 3.25 closer to Real 4, Brazillian corn can become more competitive in the international market, boosting exports, he said.


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