Motivated by the optimism of the second corn crop, whose harvest has already begun in some states, such as Mato Grosso and Paraná, Brazilian production is expected to reach record level in the 2018/2019 crop of 98.2 million tons, according to the June review of the consulting firm INTL FCStone. Of the total, the volume corresponding to the second harvest increased 2.5% in this new calculation, going from 68.5 to 70.2 million tons, also a record for the winter harvest. “Optimism about second crop’s results is widespread, including the states of Maranhão, Tocantins, Piauí and Bahia (Matopiba),” says INTL FCStone market analyst Ana Luiza Lodi. Increased corn production is expected to result in even higher inventories, estimated at 17.9 million tons. This level of inventories occurs even with the increase in the expectation for exports, which went from 32 to 33 million tons, according to the expectation of the group, a record level. “Cereal exports have already started to warm up before the usual period, starting in the second half, and there are many concerns about US production,” says Ana Luiza.

Source: Canal Rural