Brazilian domestic market of corn places its bets on the climate
Maize (Corn)
Brazil
Sustainability & Environmental Impact
Market & Price Trends
Published Mar 28, 2024
Tridge summary
The article provides an insightful analysis of the 2024 second-crop corn in Brazil, emphasizing the positive impact of recent rainfall on moisture conditions and the alleviation of climatic stress in most regions, except for a drought-stricken area in Mato Grosso do Sul. It highlights the improved productivity potential for most areas, while noting concerns for crops planted in March and regions recently affected by drought. The discussion also covers the challenges of commercializing the second crop, particularly the need to balance domestic consumption with the necessity to export nearly 40 million tons. Furthermore, it explores the expected shift in corn production and export dynamics in 2024, with a focus on domestic markets due to better domestic prices, potentially affecting prices and trading strategies. The article also touches on the influence of global factors like La Nina on corn prices, suggesting that significant bullish movements in prices are unlikely without major exports or climate events.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.
Original content
Last week’s rainfall quite alleviated the climatic stress that was beginning to impose itself on the 2024 second-crop corn. Excessive heat and little rain had been threatening the profile of the Brazilian second crop. There is still a significant and worrying pocket of drought, probably already with production losses, in the center-south of Mato Grosso do Sul, and a portion of second-crop plantations developed in the second half of March, which will have a long way to go to confirm production. Most of the other second-crop regions are now back to normal, including Mato Grosso, with great productivity potential and projection of a very early harvest. The internal market still seeks to wait for climatic variables to try to provide better price conditions for producers. However, the big conflict is: how to delay the commercialization of the second crop and not depend on exports. Brazil will need to export nearly 40 mln tons in the business year, and this initial phase shows a distant ...
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