Aug 05, 2021
Parana Safrinha Corn Production Could be Down as Much as 10 mt
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Farmers in the state of Parana in southern Brazil have harvested 10% of their 2020/21 safrinha corn and their worst fears are being confirmed. In hard hit areas of northern Parana, some yield losses are as high as 75%. The problem is that the corn was planted a month or more later than normal, some areas went up to 72 days without rain, and then three consecutive nights of frosts in early July killed the corn while it was still filling grain.
The president of AssoSoja, which represents soybean producers in Parana, originally estimated that the 2020/21 safrinha corn production in the state would be 13 to 14 million tons. He now estimates that the corn production could be down as much as 10 million tons from his original estimate.
The Department of Rural Economics (Deral) reported that 10% of the safrinha corn in the state was harvested as of earlier this week. They reported that 8% of the corn is still filling grain and that 92% of the corn was maturing. They rated the corn as 53% poor, 41% average, and 6% good. Farmers in the state have complained that the corn is high in moisture and very slow to dry down.
Farmers are concerned that the corn may be poor quality this year due to the damage caused by the frost that allowed pathogens to enter the ears before they had a chance to mature.
Some farmers in Parana will not be able to meet their forward contracts to deliver corn, so they will be forced to pay the difference between the corn they sold earlier and the current price of corn for the bushels they cannot deliver. Unfortunately for them, the current price of corn in Parana is about 130% higher than last year at this time.