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Brazil’s Corn Harvest Advances, Argentina Corn Crop To Reach 20-Year High
This week, farmers are assessing the damage to corn, wheat, and barley crops affected by frosts in the Brazilian state of Parana.
The frost lasted from Friday until Sunday, with the harder frost occurring on Sunday. The temperatures in key producing regions of the state reached as low as 24.8°F. and 46 municipalities were below 32°F.
Brazil’s second corn crop, known as the Safrinha crop, is currently being harvested.
According to local agronomists and farmers, there will be an acceleration of corn maturation. “This will result in a loss of weight of grains,” said the president of the Rural Union of Guarapuava, Rodolpho Botelho.
Total losses were not accounted yet. Until last Friday, consultancy AgRural stated that the harvest of the second corn crop reached 44% complete, with a progress of 12 percentage points compared with the previous week.
For AgRural, the losses would be small because most areas of the corn affected by frost have reached the physiological maturation. Production from safrinha is estimated at 75.7 million metric tons.
The crop in Mato Grosso was not touched by any weather complications this season. The safrinha harvest advanced to 60% complete in the state, and that will be a great help for the overall production.
“Here we did not have a drought, as has happened sometimes. It was a colder season, but we are confident in this record crop,” said agronomist Edson Borges from Mato Grosso.
Argentina Corn Output Jumps Over Soybeans
For the first time in 20 years, Argentina is likely to harvest more corn than soybeans. According to an official estimate, 57 million metrics would be harvested this season, while the output of soybeans would be 55.6 million metric tons.
If numbers are confirmed, the corn production would be 31% higher compared with last year. Harvest is 61% complete, as of Sunday.
The explanation comes from the improvement of margins brought by the coarse grain. By the time of planting, the future price for the period of harvesting brought a margin of $160 per ton. The average for the last four years was $151 per ton.
“Even though corn is more expensive than soybeans to produce, farmers invested in a technological package and have seen the returns,” said market analyst Pablo Adreani, who is based in Córdoba.
Discounting the inputs, the profits would be $400 per ton.
“This is the corn year. We are very happy about this situation,” said Alberto Morelli, president of the Association of Corn Growers of Argentina.