Mar 18, 2010
Brazil's Corn Yields Are Good, But Corn Prices Are Low
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Most of Brazil's full-season corn is mature and farmers have been busy harvesting the crop. Brazilian farmers reduced their full-season corn acreage this growing season in favor of increased soybean production, but the growing season has been very good and the full-season corn crop in Brazil could set a new corn yield record in 2009-10.
Parana - Even though rains have hampered the corn harvest in recent days, farmers in Parana have managed to harvest approximately 45% of their 2009-10-corn crop, which is ahead of last year's pace. The average corn yield thus far is exceeding 7,000 kg/ha or 108 bu/ac. The forecast is calling for dryer weather over the next ten days, which should help to accelerate the harvest pace. Parana is expected to produce about 22.5% of Brazil's total corn crop.
Rio Grande do Sul - Dryer weather in Rio Grande do Sul has allowed farmers in the state to harvest approximately 65% of their 2009-10 corn crop, which is about 10% ahead of the average pace. Above average yields have been reported in most of the state. The recent dry though is a concern for the latest planted corn. Farmers were forced to plant part of their crop later than recommended due to heavy rainfall during the month of November. This late-planted corn is just now pollinating and filling grain. Continued dry weather in the state could impact the eventual yields of the late-planted corn. In the state, approximately 8% of the corn is still pollinating, 23% is filling grain, and 19% is maturing. Rio Grande do Sul is expected to produce about 10.2% of Brazil's total corn crop.
Goias - In the state of Goias, approximately 45% of the full-season corn has been harvested. Yields are averaging between 7,000 to 7,500 kg/ha, or 110 to 115 bu/ac. The soil moisture remains adequate in the state and the later maturing corn is expected to yield just as good as the crop that has already been harvested.
Even though farmers are pleased with their corn yields this year, the prices being offered for the crop are below the cost of production in much of Brazil. This is particularly a problem in central Brazil where transportation costs are the highest. In Mato Grosso for example, the minimum price for corn, which is set by the government, is R$ 13.98 per sack, but the market price is currently in the range of R$ 9 per sack. In order for the farmer to receive the minimum price though, the corn must be sold to the government and the government has been slow to purchase the corn. In fact, the government has still not purchased all the corn it promised from last year's crop.