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Brazil's Parana 2020-21 second corn output cut to 6.1 million mt from 9.8 million mt

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Brazil's Parana 2020-21 second corn output cut to 6.1 million mt from 9.8 million mt

  • Author
  • Mugunthan Kesavan
  • Editor
  • Aastha Agnihotri
  • Commodity
  • Agriculture

Second corn production estimate in the Brazilian state of Parana -- the second-largest producer of the cereal -- has been cut to 6.11 million mt in 2020-21 from the previous estimate of 9.82 million mt, Parana's state agriculture department DERAL said in a report July 29.

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The 2020-21 corn crop will be marketed during February 2021-January 2022.

In the beginning of this season, the state was expected to produce 14.6 million mt in 2020-21 as against 12.17 million mt in 2019-20.

The loss in the second corn crop yield in the state was primarily due to the drought during much of the season.

Moreover, pests and severe frosts that occurred at the end of June, and to a lesser extent in the second half of July, exacerbated the corn yield losses, the report said.

Last week, the price received by the producer reached Real 92.04/60 kg for corn in Parana, an increase of 17% when compared to the last week of June and 124% higher than the end of July 2020, the report said.

There will be a significant reduction in Brazilian corn exports in 2020-21 and it is likely that Brazil will see record corn imports, DERAL said.

Although Brazil is usually the second-largest corn exporter in the world, southern states in Brazil often import from Paraguay and Argentina as it is cheaper than transporting corn from the Midwest region of Brazil where the bulk of the corn crop is grown.

The animal protein industry, a major consumer of corn feed, is concentrated in southern Brazil.

With Parana lowering corn production, Brazil's corn output is likely to be below 90 million mt in 2020-21, significantly below 102.5 million mt in 2019-20.

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