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August 11, 2017

Conab Increases Brazilian Corn Production 1.1 mt in August Report

In their eleventh crop report of the growing season, which was released yesterday, Conab increased the 2016/17 Brazilian corn production estimate by 1.1 million tons. The 2016/17 Brazilian soybean estimate was increased slightly (0.1 million tons) compared to last month.

The 2016/17 Brazilian corn e stimate was increased 1.1 million tons from last month to 97.1 million tons. The 2016/17 corn crop is now 46.1% larger than last year's production, which represents an increase of 30.6 million tons in just one year.

Full-season corn production in 2016/17 is estimated at 30.6 million tons, which is 18.5% larger than last year. The full-season corn acreage in 2016/17 increased 3.7% to 5.4 million hectares (13.5 million acres) and the yield increased 14.2% to 5,561 kg/ha (85.6 bu/ac). The full-season corn production is now 31.4% of Brazil's total corn crop

The safrinha corn production in 2016/17 is estimated at 66.6 million tons, which is 63.5% larger than last year. The safrinha corn acreage in 2016/17 increased 12.7% to 11.9 million hectares (29.6 million acres) and the yield increased 45.1% to 5,564 kg/ha (85.6 bu/ac). The safrinha corn production now represents 68.6% of Brazil's total corn crop.

Conab increased the 2016/17 Brazilian soybean estimate slightly compared to last month to 114.0 million tons. The 2016/17 Brazilian soybean crop is now 19.5% larger than last year's production of 95.4 million tons. The 2016/17 soybean acreage is 33.9 million hectares (83.8 million acres) which is 2% more than last year. The nationwide soybean yield is now estimated at 3,362 kg/ha (48.7 bu/ac) which is 17.1% more than last year.

The 2016/17 growing season in Brazil is a good example of big crops getting bigger. The weather across Brazil during the 2016/17 growing season was nearly ideal. Many areas of Brazil reported soybean yields that broke old yield records by as much as 15-20%.

Conab's final crop report for the 2016/17 growing season will be released in September. Their first estimate of the 2017/18 growing season will be released in early October. Planting of the 2017/18 summer crops in Brazil will already be underway by the time Conab releases their October Crop Report.

Farmers in southern Brazil are allowed to start planting their 2017/18 full-season corn crop any time they feel the conditions are acceptable. Generally, the full-season corn planting gets underway in September, but if the conditions are favorable, some corn may be planted as early as the end of August.

For soybeans though, they must hold off planting until the end of the soybean-free period, which in many states is September 15th. In the state of Parana, the state Secretary of Agriculture has decided to allow soybean planting to start on September 11, which is five days earlier than usual. They are going to conduct a one-year experiment to see if earlier soybean planting is appropriate for the state.