As this political and legal situation goes on in the country, the 2019/20 crop is to be planted. The updated estimate for the 2020 summer crop points to a 3% cut in potential area. High fertilizer prices and more requirements for corn have made growers switch back to more soybeans. Next year’s crop persists with an unclear profile. This is due to the fact that this delayed rainfall in the spring could have several consequences on next year’s crop, including a reduction in planted area and/or cut in technology use. Anyway, it is still a crop with potential of more than 100 million tons in 2020. At the moment, prices are surging in the domestic market again, which reflects this profile of the rainfall delay and continued strong exports.
The Brazilian corn crop has been comfortable so far. Rains are late this spring, as forecast in this newsletter. However, it cannot be said that this picture suggests potential production losses in relation to what was already being projected. There is an agronomic stream that is seeking to avoid high summer corn planting in regions where leafhopper has advanced over crops and caused a green bridge between summer and winter crops. Corn all over the year would be promoting this extension of this kind of plague. As a result, Minas Gerais and the Northeast and Midwest regions have found difficulty in increasing the summer corn planting.