Brazil drought worse than feared

01/30/2012 @ 8:16am

New reports from Brazil's Parana state, a leading corn and soybean producing area in the southern part of the the country, say that the drought there is "worse-than-expected," according to a Dow Jones Newswires story Monday. Parana is Brazil's leading corn grower and second leading soybean producer.

"The western part of Parana, near the border with Paraguay, has been particularly affected," says Agroconsult's Fabio Meneghin. "I didn't expect it to be so bad," Meneghin said, based on a tour of the region.

Nestor Reinke, who farms about 75 hectares in the region, told the news service that he estimates losses of 40% in his corn and 60% in soybeans.

"We went about 45 days without rain," Reinke said.

Drier conditions are expected to continue across southern Brazil, "which will maintain stress there on soybean growth," MDA EarthSat Weather reported Monday. Rains are causing harvest delays in the northern part of the country, the weather service said.

Dancing on the brink of disaster

Another South American source told Marketing Talk members last week that the recent rains in Brazil thus far have been "unable to replenish soil moisture, which has large deficits. Soy will need to receive 100 mm in February and should have another 150 mm to replenish soil moisture," said agmr, a frequent contributor to the forum.

"Next rains are expected in 10 days from now, feb 3, so in the days before that we may be going back to dance on the brink of disaster," agmr said.