Rains hit part of Brazilian second-crop regions of corn

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The 2020 second crop received rain in part of the critical growing regions last week. This picture will not change the profile of existing losses, which seem not to have been assessed by the public sector in its numbers. There are risks in northern Paraná and São Paulo, locations that did not receive rain over the week, as well as frosts that may still appear in the next thirty days. Meanwhile, the exchange rate has been offering a new great opportunity to the Brazilian market, improving prices at ports and enabling new export business. The harvest of nearly seventy million tons from June may ensure domestic supply and smooth export flow in the second half of the year.

Brazil’s 2020 second crop received good rains during the week mainly on the western side. Paraguay, western Paraná, Mato Grosso do Sul, and Mato Grosso received heavy rains and in good volume in recent days. Northern Paraná, São Paulo, Goiás, and Minas Gerais received spottier occurrences that did not resolve the critical situation. São Paulo and northern Paraná are still in urgent need of rain. Fortunately, the cold front was unable to bring frosts to second-crop regions over the week, therefore production losses may have ceased. The situation does not reverse the portion already lost, but avoids an acceleration of this year’s crop losses.

Some locations begin harvesting in Mato Grosso, and the work is expected to move more clearly from June in the state, and the remaining regions from the second half of the month. At first, many initial contracts to be fulfilled, but a harvest that will still certainly have availability for additional sales. At the same time that commercialization in the state is advanced, as well as in the whole country, prices fall rapidly, looking for export parity. High commercialization suggests little availability and less pressure to lower prices. And what is beginning to happen in this pre-harvest is that the export pace continues good, which does not match the sales figures that have been suggested in the state.