June 5 (Bloomberg) -- Brazil’s Mato Grosso state is expected to produce a record second-season corn harvest as crops benefit from late-season rainfall, researcher Soybean & Corn Adviser Inc. wrote.
Second-season production, known as the safrinha, will jump to 11.7 million metric tons from 7 million tons last year, the Hinsdale, Illinois-based consulting company led by Michael Cordonnier wrote in an online report today, citing estimates from the Mato Grosso Institute of Agricultural Economics.
“The state will produce much more corn than what is consumed domestically, with the excess being shipped to southern Brazil to supplement a very disappointing full-season crop in that region, or it will be moved into the export market,” Soybean & Corn Advisor wrote.
Brazil’s corn exports are expected to exceed 11 million tons, climbing to a record, the researcher wrote. Shipments should start to accelerate during July and August as the safrinha is harvested, and a slowdown in soybean exports at the same time should free up space in ports, it said.
Some corn in Mato Grosso was harvested during May, the first time in the state, while many farmers will start harvesting their corn crop during the second week of June, according to Soybean & Corn Advisor.
“The vast majority of corn exports from Brazil will come from the safrinha corn production in Mato Grosso and Parana,” Soybean & Corn Advisor wrote.
Most of Mato Grosso’s corn will be harvested during June and July, while farmers in Parana will bring in most of their crop between late June and early August, the researcher wrote.
“Domestic corn prices in Mato Grosso have been falling recently with the realization that a record corn crop is under way,” Soybean & Corn Advisor wrote.
Prices at the end of last week in the state were 13.50 reais ($6.56) to 15.90 reais for a bag of 60 kilograms (132 pounds), falling 27 percent to 37 percent from the end of April, according to the adviser.
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