MARKET ANALYSIS

POOR WEATHER CUTS BRAZILIAN CORN EXPECTATIONS

Weather conditions during the main planting season were unfavorable for Brazilian corn. Lower precipitation caused the soil to dry so producers had to delay the planting of the cereal, which affected the estimated annual production of the 2020/2021 harvest.

According to CONAB (the government’s food supply and statistics agency), rain in most productive regions has been spotty throughout the last months and several locations registered below average numbers. Unfortunately the biggest impacts came in the mid-south, the most productive region in the country — especially Rio Grande do Sul state.

Despite the fact that the volume was between 90 and 230 mm (3.5 in. to 9 inches rain), it mostly fell in just one week.  A result, the estimated productivity for the 2020/2021 corn harvest is now less thanfirst expected.

Many producers who planted corn earlier have experienced losses, and it represents a production shortfall of as much as 45% in production.