Brazil Corn Stocks Tight, Companies Already Importing Corn - 16.12.2019

Brazil Corn Stocks Tight, Companies Already Importing Corn - 16.12.2019

Parana full-season corn - The Department of Rural Economics in the state of Parana (Deral) indicated that the full-season corn in the state is 43% in vegetative development, 40% flowering, and 17% filling grain. The corn is rated 0% poor, 8% average, and 92% good.

Rio Grande do Sul full-season corn - The full-season corn in Rio Grande do Sul is 90% planted compared to 93% last year and 95% average according to AgRural. Even though corn is still being planted in the state, Emater/RS estimates that 1% of the corn in the region of Santa Rosa in the northwestern part of the state has been harvested. Emater rates the corn as 39% in vegetative development, 22% pollinating, 35% filling grain, and 4% mature. Conab estimates that the state will produce 6 million tons of corn in 2019/20, which is an increase of 3.6% compared to last year.

The peak of the corn harvest will be in January, which will be a little later than normal due to dry weather that delayed the planting. The tight corn supplies have resulted in higher domestic corn prices and the livestock sector is eagerly awaiting new corn supplies coming onto the market. It was announced last Thursday that JBS had purchased 200,000 tons of corn from Argentina for delivery early next year. I suspect there will be other announcements of corn imports from Argentina/Paraguay into southern Brazil.

Mato Grosso safrinha - Farmers in the state of Mato Grosso are expected to start planting their safrinha corn sometime during the first half of January. The first corn planted will be in the western part of the state. Corn prices are very attractive in the state, which could encourage maximum safrinha corn acreage if the weather is cooperative.

Parana safrinha - Some of the safrinha corn in western and northern Parana is expected to be planted after the ideal planting window closes about the third week of February. The delayed corn planting is the result of dry weather which delayed the soybean planting.

Goias safrinha - The delay in planting the soybeans in Goias will also delay the planting of the safrinha corn as well. Normally, farmers in the state want to have all their safrinha corn planted by the end of February, which is when the ideal planting window closes. For this growing season, farmers may be forced to plant their safrinha corn all the way to March 10th.

Sao Paulo safrinha - In southern part of the state, dry weather delayed the soybean planting and some of the soybeans had to be replanted. The late planting of the soybeans makes the planting window for the safrinha corn even tighter. Agronomist are warning farmers not to plant their corn too late even though there are good corn prices. If the corn is planted extra late, its runs the risk of frost in the southern part of the state and dry weather in the northern part of the state.

by Soybeans and Corn Advisor