Forward sales of Brazil’s second corn crop hit 24.3% of the expected production of 92.2 million tonnes, according to a survey by agribusiness consultancy Safras & Mercado that reflects slow farmer selling for this time in the season.
Lower prices and uncertainty related the weather have weighed on farmer sentiment, Safras said citing the risk of frosts affecting part of the fields in some states, though weather forecasts do not indicate they will.
Second corn planting, which occurs after soybeans are reaped, occurred later than normal this year because of delays in the soybean harvesting.
In May of 2022, Brazilian second corn crop sales were 31% of the expected production while the historical average for this time of year is 32.6% of projected output, according to Safras data.
Paulo Molinari, an analyst at Safras, cited logistical bottlenecks at ports and lack of storage space as affecting sales of Brazil’s second corn crop, which represents 70% to 75% of national output in a given year.
“Prices dropped a lot and farmers are still waiting for something that will improve this condition,” Molinari told Reuters. “In Parana, Mato Grosso do Sul and Sao Paulo, the risk of frosts is still making farmers put off forward sales of their second corn crop,” he added.
Corn prices have been pressured by expectations of a record harvest in Brazil, among other factors, and have deepened their decline throughout April.
A warehousing deficit in Brazil, compounded by slow sales of a record soybean crop in the country, has also exacerbated the silo shortage problem, Molinari noted.
“There is no room to accelerate corn sales in May,” Molinari said, adding Brazil’s port logistical woes will only improve around September, after most of Brazil’s soybean crop has been shipped.
Source : Nasdaq