Oct 06, 2009
Farmers In Parana Cutting Back On Full-Season Corn Acreage
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Parana is the number one corn producing state in Brazil and it looks like the full-season corn acreage in the state could be down by as much as 20% or more compared to last year. Last year's corn crop in Parana was very disappointing. Both the full-season crop and the safrinha crop suffered significant losses due to dry weather. Yields for the full-season crop declined 25% last year and the safrinha yields were down 28%. In addition to low yields last year, Parana farmers also received very low prices for their reduced corn production.
The reduction in full-season corn acreage in Parana (1.27 million hectares were planted in 2008-09 and it is estimated that 1.0 million hectares will be planted in 2009-10) means that the soybean acreage in the state will increase by approximately the same amount. Soybeans are cheaper to plant, they are less risky, and the domestic soybean price is better than the domestic corn price.
In recent years, Brazilian farmers had hopped that corn would become a major export crop for the country and that the corn price would reflect the international price and not be tied to the whims of the domestic market. For a few years that indeed was the case and domestic corn prices in Brazil were very strong. Last year though, exports were disappointing and it resulted in a big carryover and depressed prices. Brazilian farmers now fear that the corn will once again go into a boom-bust cycle and be dependent solely on the domestic market.