Corn and soybean farmers in Brazil are seeing record-setting yields, thanks to a favorable growing season, and will harvest their largest corn and soy crops ever, said USDA. As a result, global supplies will be larger than expected a month ago and will weigh on farm-gate prices for U.S. crops.
Brazil is forecast to harvest 93.5 million tonnes of corn this year, a 40 percent increase from the 2015/16 crop due to higher yields and more land in corn, said USDA’s World Agricultural Production report. “Last year’s low production and yield were the result of a drought-affected second crop,” said the report. Harvest of the first crop is under way at the same time growers are planting the second crop. “Well distributed and sufficient rainfall in April and May will be essential to realizing the yield potential of this crop.”
Soybean production is forecast at 111 million tonnes, 3 percent larger than forecast a month ago and 12 percent larger than the previous crop. USDA said two-thirds of the crop has been harvested, with yield running at above-average to record levels. Brazil is second to the United States as the world’s largest soybean grower but is the leader in soybean exports.