USDA attache sees Brazil 2023/24 corn crop at 130 mln tons

Following are selected highlights from a report issued by the U.S. Department of Agriculture’s (USDA) Foreign Agricultural Service post in Brasilia:

“Brazil has recently started planting its corn crop for the 2023/24 season. However, due to high production costs and lower expected earnings, profit margins are under pressure. As a result, Post predicts a decrease in planted area, with production for the next season estimated to drop from 135 MMT (million metric tons) (MY 2022/23) to 130 MMT (MY 2023/24). In addition, the El Niño weather phenomenon is anticipated to continue having an impact on crops in the southern region of Brazil, particularly affecting wheat farms, which will likely result in lower yields.

As such, wheat production for MY 2023/24 is predicted to decrease by 7% to 10.2 MMT. Meanwhile, rice market prices have started to rise while production costs are easing, making it more attractive for farmers to sow rice for the upcoming harvest. Post forecasts rice harvested area at 1.5 million hectares for MY 2023/34, a 2% increase over the previous season.”
Source: Reuters (Reporting by Julie Ingwersen in Chicago; Editing by Rashmi Aich)