IMEA warns of US-China impact as corn sowing complete in Brazil’s Mato Grosso

The deterioration in US-China trade relations could see US farmers maximise corn production over soybean in the 2018/19 crop in a scenario that “may affect the scenario from the perspective of sowing a larger soybean area,” IMEA warned Monday.

The Mato Grosso-based agricultural agency also announced that planting of the corn crop was 100% complete in the state for the 2017/18 season across 4.4 million hectares and production is estimated at 25.9 million mt.

While that is the third highest corn production level of the last six years, it represents a near-15% decline on the previous harvest, which IMEA currently estimates at 30.4 million mt.

Updated export figures show the state is grinding out the last few cargoes, with volumes dropping off dramatically in March.

Iran remained the major export destination, although volumes have dwindled to 74,840 mt to that country and 179,002 mt overall, just 21% of February’s export figures and a fall of over 90% on January’s volumes.

The bulk of the state’s exports continue to leave via the port of Santos, with Taiwan and Malaysia the next two busiest destinations for corn exports in March.