Dec 22, 2021

Brazil's 2021/22 First Corn Crop Negatively Impacted by Drought

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

The first corn crop in southern Brazil has been severely impacted by the hot and dry conditions because it hit the corn during the critical pollination and grain filling phase.

Parana - The Department of Rural Economics (Deral) reported that as of earlier last week the corn in Parana was 26% in vegetative development, 43% pollinating, 30% filling grain, and 1% mature. The corn was rated 3% poor, 20% fair, and 77% good. The percent rated good was down 13 points from the prior week.

Rio Grande do Sul - Emater reported that 91% of the corn in Rio Grande do Sul had been planted as of late last week compared to 88% last year and 94% average. The corn is 35% germinating/emerging, 25% pollinating, 33% filling grain, and 7% mature.

The weather has been dry in Rio Grande do Sul since the second half of October and the prolonged period of dry weather have taken a toll on the crops in the north-central part of the state. The corn crop has been the most impacted because the dry weather hit during pollination and grain filling. Rio Grande do Sul is responsible for approximately 18% of Brazil's first corn crop acreage.

Some regions of north-central Rio Grande do Sul have been 60 days without significant rainfall and recent rains have not been enough to recharge the soil moisture.

According to the president of the Rural Union of Noa-Me-Toque/RS in north-central Rio Grande do Sul, much of the corn in the area has suffered losses of 70% with the worst areas having losses as high as 90%. Many of the farmers are cutting the corn for silage instead of grain, but the lack of ear production makes for poor quality silage with low protein content. Dairy farmers in the region have been forced to purchase additional feed to maintain milk volumes.

Mato Grosso Safrinha Corn - The Mato Grosso Institute of Agricultural Economics (Imea) estimates that 92% of the safrinha corn in the state will be planted within the ideal planting window. They are expecting farmers in the state to plant 6.23 million hectares (15.38 million acres) with a yield of 106.3 sacks per hectare (101.4 bu/ac) for a total production of 39.6 million tons.

Farmers in Mato Grosso have forward contracted 40.9% of their anticipated 2021/22 safrinha corn production at an average price of R$ 62.82 per sack (approximately $5.20 per bushel)