Conab raises Brazil's 2021-22 corn output forecast by 0.63 mil mt to 115.22 mil mt

Brazil's national agricultural agency Conab has raised its estimates for corn production in the marketing year 2021-22 (February-January) to a record 115.22 million mt from 114.59 million mt projected in May.

Brazil's 2021-22 corn crop will be marketed from February 2022 to January 2023.

The increase in production is likely due to revisions in the planted area of corn.

Conab estimates 2021-22 second-corn area at 16.46 million hectares compared with 16.29 million hectares reported in May.

The first-corn crop in Brazil is planted between September and December and harvested over February-May, while the second crop is planted and harvested over February-March and June-July, respectively.

Brazil is one of the top three exporters of corn in the world and a good harvest is crucial for both the domestic and global supply given the current supply risks and tight stock levels.

Despite the increase in total production, there was a sharp drop in corn yield in the southern region during the first harvest due to a lack of rainfall. However, the increase in the planting area of second corn and production is expected to offset the losses.