Mar 08, 2010
Brazil And Argentina Could Have Record Corn Yields In 2009-10
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
The corn crop in South America is entering into its final stages of maturity and it continues to benefit from nearly ideal growing conditions. The early corn harvest is under way in both Brazil and Argentina with very good yields being reported. As a result, there is a strong possibility that both Brazil and Argentina could end up with record corn yields for the 2009-10 growing season.
Brazil
In Brazil, Parana is the leading corn-producing state and in many corn-producing regions of the state, the average corn yield is expected to equal or surpass 10,500 kg/ha (161 bu/ac). Many co-ops in the state are expecting their members to harvest record corn yields in 2009-10. This is a tremendous accomplishment given the fact that the drought afflicted 2008-09-corn crop in Brazil averaged only 3,599 kg/ha (55 bu/ac). In addition to good weather, farmers in Parana are also accrediting the good yields to improved corn hybrids and more effective pest and disease control measures.
One of the best locations to grow corn in Parana is near the city of Guarapuava, which is located in south-central Parana. The region has an elevation of approximately 1,100 meters, which provides one of the best climates in Brazil to grow corn. In addition, the farmers in the region are known for their corn growing ability and their commitment to making the investments necessary to grow high-yielding corn. The 2009-10 growing season was very favorable and as a result, it is expected that this region will have yields as high as 15,000 kg/ha (230 bu/ac) or in some cases even higher.
In February, Conab estimated Brazilian nationwide corn yield at 3,936 kg/ha (61 bu/ac), which would surpass the old record of 3,911 kg/ha (60 bu/ac) set in 2007-08. The corn crop in central and southern Brazil is expected to average 4,836 bu/ac (74 bu/ac). In Conab's March estimate, the corn estimate should either hold steady in increase even more.
In contrast to their good fortune in growing a record corn crop, Brazilian farmers do not like the fact that domestic corn prices in Brazil are below the cost of production as well as the minimum price set by the government. Sluggish export demand and a high carry over continue to depress prices. With a good corn crop also expected in Argentina, the domestic corn price in Brazil is not expected to recover unless there is a significant problem with the 2010 corn crop in the U.S.
Argentina
The weather during the growing season in Argentina has also been very beneficial. The lingering drought of 2008-09 slowed the early corn planting in September of 2009, but the rainfall increased in October of last year and continued very good throughout the growing season. As a result, corn yields in Argentina are also expected to set a new record in 2009-10. This comes as very welcome news for Argentine farmers after suffering extreme crop losses during the drought of 2008-09. Harvesting of the 2009-10-corn crop in Argentina started within the last two weeks and approximately 3-5% of the crop has been harvested.
The last record yield in Argentina was set in 2006-07 when the nationwide corn yield was 8,035 kg/ha (123.7 bu/ac). Current yield estimates in Argentina have the crop at approximately 8,542 kg/ha or 131.5 bu/ac.
The corn harvest is most advanced in central Entre Rios where approximately 35% of the corn has been harvested with yields running between 8,000 to 9,000 kg/ha or 123 to 138 bu/ac. Very early yields in central Santa Fe are also quite encouraging at 10,000 to 14,000 kg/ha or 154 to 215 bu/ac. Not all areas are expected to have such high yields especially in southwestern Buenos Aires and La Pampa where dry weather did affect the corn development.