Brazil Farmers to Reap Record Second Corn Crop

By Ana Mano

SAO PAULO, June 24 (Reuters) – Brazilian farmers will produce a record 123.3 million metric tons of second corn, agribusiness consultancy Agroconsult said on Tuesday after surveying fields in key producing regions nationwide.

Second corn, which Brazilian farmers are harvesting now, will account for about 80% of national output this year. It is mainly exported in the second half, competing with U.S. corn suppliers on global markets.

Brazil is reaping “the mother of all safrinhas,” Andre Pessoa, head of Agroconsult, told a press conference, referring to second corn, which is planted after soy is harvested in the same areas.

Good weather conditions, particularly abundant rains throughout April and May, helped yields in many key growing states, Agroconsult said.

The new forecast represents an increase of 10.4 million tons over a May estimate by Agroconsult, and is 20.2 million tons above last season’s output, the consultancy said.

In Mato Grosso, Brazil’s biggest farm state, the average yield stood at 131.9 bags per hectare, up almost 12% from the previous year, according to Agronconsult data.

But harvesting such a large crop poses challenges.

Agroconsult said that removing the massive crop from fields will weigh on Brazil’s infrastructure. Additionally, unattractive prices and the slow pace of sales, particularly in export markets, are worrying some farmers.

Pessoa said China has been “out of the market for some time” while important buyers of Brazil’s corn, such as Iran and Egypt, face regional conflicts, potentially hurting Brazil’s exports this year.

Competition from rivals like Argentina and the U.S., which will harvest some 400 million tons, may also be a problem, Agroconsult said.

While the north of Parana may be affected by frosts during harvesting work, no severe damage is expected, Agroconsult said.

Brazilian farmers planted 18.1 million hectares (44.726 million acres) with second corn, up 5.7% from last season, according to Agroconsult data.

(Reporting by Ana Mano; Editing by Chris Reese and Leslie Adler)