Aug 13, 2010
Farmers in Parana Pleased With Safrinha Corn Yields
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
After a delay due to wet weather, farmers in Parana are back in the fields harvesting their safrinha corn crop. They generally are very pleased with this year's yields, but they are not pleased about the domestic price of corn. In northern Parana where most of the safrinha is grown, yields are being reported in the range of 75 to 90 sacks per hectare or 70 to 83 bushels per acre. These are very good yields considering that last year's drought impaired crop yielded only 46 bu/ac.
On the price front, corn prices have improved recently, but not enough to generate any enthusiasm for the 2010/11 full season crop or the 2011 safrinha corn crop. In the city of Maringa last week, the price of corn went from R$ 12.80 per sack to R$ 13.60 per sack or US$ 3.32 to US$3.53 per bushel.
Conab's latest monthly report estimates the total safrinha corn crop at 20.1 million tons, which represents 37% of Brazil's total corn production. Mato Grosso is the leading safrinha corn producing state followed by Parana and these two states combined account for approximately 65% of the total safrinha production. While the safrinha corn crop in Parana is turning out much better than expected, the same cannot be said of the safrinha crop in Mato Grosso where the early onset of the dry season reduced safrinha corn yields.
At current price levels, farmers in Parana are not enthusiastic about planting corn and it is anticipated that they will cut back significantly on their full season corn acreage in 2010/11 and that they will also reduce their 2011 safrinha corn acreage as well.