A late-season drought slashed Brazilian corn production 20 percent earlier this year, but the USDA’s early forecast is for a startling rebound for 2016/17, with a record crop of 86.5 million tonnes within reach.
Brazil grows two crops of corn a year. The first, which is one-third of total production, is planted from September through November, and harvested beginning in February. The second crop is planted from January through March, following the soybean harvest, and matures in June. Growers are expected to plant more land to corn, “driven by optimism for higher output compared to last year’s poor harvest,” says the monthly World Agricultural Production report.
Besides the larger crop in Brazil, USDA raised its estimate of corn production in China by 3 million tonnes and in Russia by 1 million tonnes. Despite the larger production worldwide, USDA says this year’s U.S. corn crop will sell for an average $3.35 a bushel, up 5 cents from last month’s estimate “on continued higher-than-expected early-season prices.” The United States is the largest corn grower in the world, China is No. 2 and Brazil ranks third.