News

Brazil crop concerns could provide support for U.S. Corn

A market analyst says weather challenges in South America could push commodity prices higher for U.S. farmers this fall.

Jeff Peterson with Heartland Farm Partners says some parts are facing abnormally wet conditions. “What that could mean for problems down the road is that the southern part of Brazil is where they need to plant that first crop of corn. If they don’t get as much planted or it’s slower getting planted, then that has the ability to comeback and help the corn market a little more.”

He tells Brownfield Brazil will use most of its first corn crop domesticallyfor ethanol use. “As a result, if they have to take some more of the bushels, that’s out of that first crop. Or they will have to wait and get some more out of that Safrinha crop, which will come in after the first crop of soybeans get planted, then all of a sudden, that opens up more export demand from the U.S.”

Peterson says there are abnormally dry conditions in the northern part of Brazil, which could impact soybean planting. “If that gets planted too late, the problem that everyone gets concerned about is what does that mean for the planting for the Safrinha corn crop, which makes up about 75 percent of production. If they have trouble getting that planted or planted late, then the problem is it pushes it into the dry time in May, June and July.”

Brazil’s safrinha corn cropis the country’s second corn crop, planted after the soybean harvest, typically during Brazil’s late summer and fall.

And, he says, there are other production and export concerns in Europe that could also contribute to additional demand for U.S. corn.

Jeff Peterson: