The 6th survey by Consultoria DATAGRO for the Brazilian corn crop 2020/21 estimates a production, totaling 1 st and 2 nd harvests, of 109.30 million tons. However, this number depends, in large part, on the performance of the winter harvest, which corresponds to 78% of the volume of the current season.
About 40% of the winter crop, whose planting is concentrated in the Center-South region of Brazil, was sown outside the period of technical recommendation, which implies a need for rain this month and early May. “It rained very little in the Center-South region in the last two weeks and this will undoubtedly cause potential losses”, says Flávio Roberto de França Junior, Grain coordinator at DATAGRO. “The price has exploded in the last few weeks, above R$ 100.00 (Campinas base), reflecting this concern of the winter harvest, most of the Brazilian corn harvest. Losses have already been recorded in the summer harvest and demand from the domestic market is very strong. This, coupled with very high international prices, a high exchange rate, can cause the corn market to collapse”, points out França Junior. The rains in the next few days will be decisive for the harvest of this season and for the supply of the domestic market. “If the winter harvest is reasonable, the biggest loss will probably be on exports. However, if we have significant losses, there may be a lack of product and we will have a very complicated year for the domestic market”, concludes the Grain coordinator at DATAGRO.
Source: DATAGRO