Oct 27, 2021

2021/22 Brazil's First Corn Crop 63% Planted vs. 51% Last Year

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

The first corn crop in Brazil was 63% planted as of late last week compared to 51% last year and 60% average according to Safras & Mercado.

The safrinha corn crop accounts for approximately three-quarters of Brazil's corn production and the fate of the safrinha corn is yet to be determined. The safrinha corn is going to be planted on time early next year unless heavy rains during January and February delay the soybean harvest. With a La Nina in place, it is even possible that the weather during safrinha planting might be dryer-than-normal.

Another potential problem for the safrinha corn are the soaring prices for inputs and the possibility that the delivery of those inputs could be delayed. Planting a second crop of corn is a risky proposition and Brazilian farmers do not generally "pour on the fertilizers" for their safrinha corn. It is possible that farmers might reduce their fertilizer application to reduce costs. That in turn, might limit safrinha corn yields, so the 2021/22 safrinha corn production in Brazil is uncertain.

In the October 2021 Crop Report, Conab estimated the first corn crop production at 28.3 million tons, the safrinha corn crop at 86.3 million tons, and the third corn crop at 1.6 million tons. They estimated Brazil's total 2021/22 corn production at 116.3 million tons or 29.3 million more than last year's production of 86.9 million tons (+33.7%).

Parana - Farmers in the state had planted 88% of their first corn crop as of earlier last week according to the Department of Rural Economics (Deral). The corn is 12% germinating and 88% in vegetative development and the crop is rated 4% average and 96% good. Deral is estimating that the corn yield will be 166 sacks per hectare (158 bu/ac).

Rio Grande do Sul - Farmers in the state had planted 70% of their corn as of late last week compared to 63% last year and 62% average according to Emater. This represents an advance of 5% for the week. The cost of producing corn in the state increased this year due to higher fertilizer prices and the need to control corn leafhoppers. The average spot price for corn in the state last week was R$ 84.12 per sack (approximately $7.08 per bushel).

The first corn crop in the state of Santa Catarina was 92% planted last week according to Safras & Mercado with Mato Grosso do Sul 21% planted and Minas Gerais 16% planted.