BRAZIL CORN WATCH: Prices ease on improving crop growing conditions

Corn prices in Brazil has eased over the last few days as the pace of 2021-22 first planting remained well above last year’s, while continuing rains bode well for the second corn planting, data from the local government and agriculture consultancies showed.

Brazil’s 2021-22 corn crop will be marketed over February 2022-January 2023.

The corn price indicator, tracked by Brazil-based Center for Advanced Studies on Applied Economics, or CEPEA, fell to Real 86.97/60 kg ($255.67/mt) Nov. 1 from 89.18/60 kg a week ago.

“In general, buyers are staying away from purchases of corn in the national spot, indicating that they are well supplied and attentive to the weak pace of exports, the good development of the summer crop in Brazil and the progress of the harvest in the US,” CEPEA said.

As of Oct. 28, planting of 2021-22 summer corn crop in the Center-South region was at 63% of the estimated area, compared with 54% during the same period last year, according to a survey by Brazil-based agriculture consultancy, AgRural.

The weather conditions have been favorable to the planting and development of crops throughout the region.

With the sowing of soybeans in the final stretch, Mato Grosso, the largest producer of corn in Brazil, has already secured a good window for planting the second corn crop in the first two months of 2022, AgRural said.

Meanwhile, more rains are expected to replenish moisture across Mato Grosso, Mato Grosso do Sul, Parana, Santa Catarina, and Rio Grande do Sul over the next few days.

“Additional improvements are expected next week in northern areas, especially Mato Grosso, with some limited improvements in Mato Grosso do Sul and Parana,” Maxar said in its daily weather report on Nov. 2.

Abundant rains in Goias, Minas Gerais, and Bahia next week will maintain favorable moisture for corn and soybeans there, Maxar said in the report.

Every year, the first corn crop in Brazil is planted during September-December and harvested in February-May, while the second crop is planted in February-March and harvested in June-July.

S&P Global Platts

Tags: weather conditions, corn, planting, corn crop, Brazil, corn prices