Tuesday, February 12, 2013

Strong Brazil crop anchors increased global corn production


    Global corn production estimates for 2012-13 are raised 2.1 million tons, largely based off of the strength of the Brazilian crop, whose production is raised 1.5 million tons. Those figures were released February 8 in the United States Department of Agriculture’s World Agricultural Supply and Demands Estimates report.
    Higher acreages planted and stronger yields for the first-season crop and good early-season prospects for second-season corn are credited for the hike in Brazilian production.
    The 1.5 million ton climb puts Brazil near its record increased levels it set a year ago, said USDA chief economist Joe Glauber. If the projections hold true, Glauber said Brazil could become the world leader in corn exports.
    “They’ve really become a major corn producer. That’s the first time in our records at least that another country has become the top exporter in the world,” said Glauber.
    Adding to the overall world corn production increase are a 0.8 million ton increase in Mexico, 0.6 million ton hike in India, and an increase of 0.4 million tons in the Ukraine. Those gains more than offset the drop in Argentinian production, which has been lowered by 1 million tons. Glauber explained that the country has been experiencing dry conditions, but its corn production was still 29 percent above its crop from the prior year, which was also hammered by drought.
    The increase in foreign corn production signals a projected 50 million bushel decrease in US corn exports. Slow sales and shipments are adding to those lower corn export figures.
    The projected corn ending stocks are raised 30 million bushels. Pressure remains on the feed markets, as U.S. corn use for ethanol production was unchanged and corn use for sweeteners and starch is raised 20 million bushels.
    To view the full report click here

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