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Conab Trims Soybean, Corn Forecast
1/13 7:06 AM

SAO PAULO (DTN) -- Brazilian crop agency Conab trimmed its forecasts for soybean and corn production in the 2020-2021 growing season as bad weather in the final months of last year planting and development of both crops.

Brazilian farmers will grow 133.7 million metric tons of soybeans this season, an amount that would still be a record for production, the agency said Wednesday. In December, the agency forecast a crop of 134.5 million tons. Brazil, the world's biggest producer of soybeans. grew 124.8 million tons of soybeans in 2019-2020.

Some soybean producers had to replant their fields because of hot, dry weather in the third quarter of 2020, and some farmers chose to replant corn instead, Conab said. With the return of rain late last year and early this year, the outlook is still positive for soybean production, with strong demand from China and a favorable exchange rate, the agency said.

Brazilian farmers have been increasing the area planted with soybeans for more than a decade, and when China reduced its purchases of soybeans from the U.S. as a result of their trade conflict, Brazil has been able to step in and take up the slack.

Brazil has been the world's biggest producer of soybeans in two of the past three seasons, beating the U.S. for the title in the 2017-2018 and 2019-2020 seasons, and the South American country will hold the title again for the 2020-2021 season, according to the U.S. Department of Agriculture.

Brazil also is a major corn grower, with production outstripped only by the U.S. and China, though much of the Brazilian crop is used domestically. Conab considers that Brazil produces three corn crops in one season, one in the summer, one in the country's mild winters and one in the north of the country that is produced in the same period as in the northern hemisphere.

Conab trimmed its forecast for the total corn crop in 2020-2021 to 102.3 million metric tons, down from 102.6 million tons the agency forecast in December and just below the record of 102.5 million tons set in the 2019-2020 season.

 
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