Brazil corn production faces 17% fall to 90.52 million mt: Safras

Pressure on corn prices will likely lead to a reduction in Brazil’s planted corn acreage, resulting in a 17% fall in production levels in the 2017/18 harvest, agricultural consultancy Safras and Mercados said Friday.

The agency estimated production of 90.52 million mt for the 2017/18 harvest, versus the 108.87 million mt forecast for the 2016/17 harvest.

That reflected a 12.8% fall in the planted area as softer corn prices and raging demand from China for soybeans have seen the two crops’ fortunes moving in opposite directions.

Safras expects corn to be planted on just over 16 million hectares next year, versus just under 18.5 million ha in 2016/17.

In its most recent WASDE report, the USDA put the volume of Brazilian corn production at 98.50 million mt for 2016/17, with 2017/18 coming in at 95 million mt.