Market News & Headlines >> Brazil Lowers Corn, Soy Crop Forecasts
CONAB, the supply arm of Brazil’s agriculture ministry on Tuesday lowered its estimate of that country’s corn production by 5.5% and cut its estimate of soybean production for the second month in a row.
CONAB forecast Brazil’s total 2015/16 corn crop at 79.96 million metric tons, down from an April estimate of 84.66 million tons as a result of reductions in winter or “safrinha” crop yields due to hot, dry weather in key growing areas. The agency slashed its “safrinha” crop forecast by 7.4% to 52.91 million tons from 57.13 million and warned further cuts could be on the way.
The CONAB production forecast is a little more than a million metric tons below USDA’s latest estimate of Brazilian corn production at 81.00 million tons, down from an April forecast of 84.00 million.
Meanwhile, CONAB lowered its forecast for Brazil’s 2015/16 soybean crop to 96.91 million metric tons from the April forecast of 98.98 million tons. The agency said soybean yields in the top producing state of Mato Grosso state were the worst since 2006/07 due to irregular rains. USDA on Tuesday morning cut its estimate of Brazil’s soybean crop by 1.00 million tons, but still sees production at 99.00 million tons.