Brazil corn crop continues to get bigger

Brazil’s equivalent of the USDA has raised its corn production projection again.

CONAB now estimates total production at a record 129.962 million tons, 1.7% above in July, with the second crop at 100.184 million tons. CONAB says second crop yields have been better than expected with harvest more than 60% complete and a large part of that crop is bound for the export market. Brazil has taken a big chunk of the global corn market away from the U.S. due to a price advantage and geopolitical issues, including a closer trade relationship with China. Brazil’s corn exports for the current marketing year are seen at 50 million tons.

First crop corn production was 27.373 million tons, an increase of 9.4% on the year, with the third crop estimated at 2.405 million tons.

Soybean production was reported at 154.603 million tons, statistically unchanged on the month and up 23.1% on the year, with exports seen at a 95.64 million tons. CONAB is also expecting record large soybean meal and oil exports as Brazil fills some of the vacuum left by a smaller crop in Argentina, which is usually the world’s largest exporter of soybean products.

The projections for cotton and rice production were also up from last month, while the wheat guess was fractionally lower.

CONAB’s next update for Brazil is scheduled for September 6th.

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