Brazil: Grain and Feed Update
Link to report:
Post decreases its corn production forecast for MY 2020/21 (March 2021–February 2022) to 105 MMT, in response to reduced yields for first-crop corn, as well as the likelihood of delayed planting for large portions of second-crop “safrinha” corn. Post expects Brazil’s corn area to expand by 1 MHa, reaching an all-time high of 19.5 MHa. Despite concerns about late planting of the safrinha crop, producers will be motivated by near record corn prices to expand corn acreage even as they are taking a risk on yields by pushing the growing cycle deeper into the dry season. Post maintains its forecast for MY 2020/21 (April 2021–March 2022) milled rice production at 7.4 MMT, consistent with the expansion of area over MY 2019/2020 paired with a return to trend yield. Post estimates wheat production at 6.25 MMT and sees an opportunity for expanding U.S. wheat exports to Brazil given near record domestic prices and an expectation of large Brazilian exports in MY 2020/21 (October 2020– September 2021).
