SECOND CORN CROP IS EXPECTED TO GROW 20% IN BRAZIL, SAYS CONSULTANCY

The field should gather extra wind in the 2018/2019 crop to receive the expected increase in corn production. According to consultancy INTL FCStone, the increase is 14.1% compared to the previous crop, jumping to 92.2 million tons of corn resulting from revisions in the first and second crop of the cereal. “In the case of the first 2018/2019 corn crop, there was a slight increase in the production estimate, which stood at 27.3 million tons, a variation of less than 200K tons compared to last month. In relation to the past crop, this level of production represents an increase of 1.7% “, explains the market analyst of FCStone, Ana Luiza Lodi. The higher production in the summer results from an increase in estimated productivity, which, on average in Brazil, increased from 5.22 to 5.26 tons per hectare. “In Rio Grande do Sul, corn crop conditions are very positive and state productivity, which alternates with Minas Gerais in the position of largest producer of the summer crop, was raised to 6.9 tons per hectare,” says analyst Ana Luiza. Regarding the winter harvest, in its first estimate for 2018/2019, the consultancy pointed out a production of 64.9 million tons, considering an area increase compared to 2017/2018, which closed the season with 53.98 million tons tons, according to the CONAB, and a normalization of productivity, after the expressive reduction of the previous crop. This level of production represents an increase of 20% in the annual comparison. The planted area is estimated at 11.6 million hectares, an increase of 2.7% over last season, due to the expected growth of the area in Mato Grosso and Paraná, which should be favored by the advanced soyabean crop. This recovery in production is expected to contribute to maintaining final corn stocks at a high level of 14.4 million tons, according to INTL FCStone, even with higher exports.

Src.: Canal Rural