Weather remains an issue in Brazil

Although the National Supply Company (CONAB) revised Brazilian soybean and corn production slightly upward in its latest forecast due to expanded planted area, year-on-year output of those crops is projected lower.

Adverse weather conditions are the main reason for the decline, CONAB said, noting that its May 14 report did not take into account recent flood damage to soybeans in southern Brazil and dryness impacting the corn crop in the northern part of the country.

CONAB pegged the 2023-24 soybean crop at 147.6 million tonnes, down 5% from last season, while it projected this year’s corn crop at 111.4 million tonnes, 15% lower than in 2022-23.

It noted that total area cultivated for this year’s soybean harvest is 45.7 million hectares, nearly 4% higher than last year’s total. However, yields were lower than in the previous harvest throughout most of the country, a reflection of the adverse weather conditions that occurred during the implementation and development of the crop.

Despite the year-on-year production decline, Brazil is still projected to be the world’s largest producer and exporter of soybeans in 2023-24 and rank third in corn output and second in exports.

The agency estimated 2023-24 rice production in Brazil at 10.4 million tonnes. However, the frequent heavy rains in Rio Grande do Sul, the main rice-producing state, will result in losses on at least 8% of the planted area.

“In other states, the harvest is progressing favored by climate stability,” CONAB said. “By (May 5), around 80.7% of the area sown throughout the country had already been harvested. The quality of the harvested grains is satisfactory, with good yields also in the quantity of whole grains.”

Tags: corn, Brazil, soybean, crop condition, crop forecast