Brazil’s corn crop outlook is being lowered due to hot and dry conditions. Firms have been slashing estimates for soybeans recently, but USDA’s Foreign Agriculture Service now sees the corn crop as significantly less. It’s lowering its estimate by four million tons, while raising the planted acreage estimate because they see an increase in second crop planting.
Despite the World Supply and Demand estimates update tomorrow, analysts admit forecasting South American crop production is a tough nut to crack because of the crop’s size. Growing conditions are scattered: Central Argentina and South Brazil saw record heat and drought, and then hit with constant rainfall, while Northern area are having a fantastic year. USDA’s Chief Meteorologist calls it a “tale of two cities.”
“It’s going to take really the entire season to see how much of an offset there is in the good yields in the North versus the poor yields in the South. We’re really going to have our work cut out for us.”
He put its as some people are seeing the best of times, while others are seeing the worst of times.
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