Conab cuts Brazil's 2019-20 corn output estimate to 100.99 mil mt

New Delhi — Brazil's national agricultural agency Companhia Nacional de Abastecimento (Conab) cut its corn production estimate to 100.99 million mt for 2019-20 on June 9 from 102.34 million mt in its previous survey.

In 2018-19, corn output in Brazil totaled 100.04 million mt.

The first corn output estimate for Brazil was raised slightly to 25.43 million mt in 2019-20, while the second corn crop projection was cut to 74.23 million mt from 75.91 million mt, the report said.

In Brazil, the first corn crop is planted during September-December and harvested in February-May, while the second crop is planted in February-March and harvested in June-July.

The corn harvest is currently underway in Brazil and so far 9% of the planted second crop has been harvested, Conab said June 8.

The reduction in the production estimate is primarily due to irregular rainfall and severe drought in some of the key corn growing regions of Brazil.

Despite the latest downward revision to corn output, it would be still a record high as a lower yield was offset by a higher planted area.

Planted area of corn, both first and safrinha, or second, crop, was estimated at 18.48 million hectares in 2019-20 compared with 17.49 million hectares the previous season.

Conab also reduced its estimate for Brazil's 2019-20 ending stocks to 9.9 million mt, the lowest since 2015-16, from 11.14 million forecast last month.

Conab kept both corn exports and domestic consumption projection for 2019-20 unchanged at 34.5 million mt and 68.5 million mt respectively.

Brazil exported a record 41.07 million mt corn in 2018-19, while domestic consumption was 65.72 million mt.