Mar 17, 2016

Safrinha Corn Crop in Parana rated 97% in Good Condition

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

Livestock producers in southern Brazil have been hurt financially in recent months by a tight supply of corn and near record high corn prices in southern Brazil. The high prices are the result of record large Brazilian corn exports and a declining full-season corn crop in southern Brazil. In recent years, many farmers in southern Brazil have opted to plant soybeans instead of full-season corn due to the better returns from soybeans. The result has been an increasing deficit of corn for the livestock industry in southern Brazil.

The declining full-season corn production is illustrated once again by a recent report from the Department of Rural Economics for the state of Parana (Deral). They reported last week that 52% of the full-season corn in the state had been harvested and the total full-season corn production is estimated at 3.52 million tons. The full-season corn acreage in the state declined 19% compared to last year and the full-season corn production is expected to decline 24% compared to last year. They rated the full-season corn as 88% in good condition, 11% in average condition, and 1% in poor condition.

Most of Parana's corn crop will now be produced as the safrinha corn crop, which is planted after the soybeans are harvested. Deral reported that the safrinha corn in Parana was 83% planted as of last week and the crop was rated 97% in good condition and 3% in average condition. The safrinha corn acreage in the state is estimated to have increased 7% to 2.06 million hectares and the total safrinha corn production is expected to increase 4% to 11.99 million tons.

If these estimates verify, then the safrinha corn crop in Parana will be up being approximately 3.4 times larger than the full-season corn crop.