CONAB cuts soybean, corn estimates further
Brazil’s equivalent of the USDA has lowered its outlooks for soybean and corn production.
CONAB now has soybeans at 149.404 million tons, a decrease of nearly 3.8% from January and well below initial expectations because of planting delays and dry weather in some growing areas during key phases of development.
Brazil’s second corn crop, planted after soybeans in some areas, is pegged at 88.099 million tons, a decline of 3.4% on the month and 13.9% on the year due to the issues with soybean planting earlier in the season.
Combined production for Brazil’s three crops is estimated at 113.696 million tons, a potential drop of 13.8% from a year ago. That includes a first crop of 23.607 million tons, a decrease of 13.8% from last year, and a third crop of 1.991 million tons, 7.6% lower.
CONAB says these smaller crops should lead to lower exports for Brazil, which could open up some opportunities for the U.S.
Brazil’s soybean harvest and second crop corn planting are both on going.
CONAB’s next set of production estimates for Brazil is out March 12th.