AIRLINK 64.25 Increased By ▲ 2.05 (3.3%)
BOP 6.19 Decreased By ▼ -0.04 (-0.64%)
CNERGY 4.89 Decreased By ▼ -0.10 (-2%)
DFML 14.93 Increased By ▲ 0.03 (0.2%)
DGKC 66.99 Decreased By ▼ -2.00 (-2.9%)
FCCL 17.38 Decreased By ▼ -0.35 (-1.97%)
FFBL 24.71 Increased By ▲ 0.11 (0.45%)
FFL 9.20 Decreased By ▼ -0.01 (-0.11%)
GGL 10.26 Increased By ▲ 0.36 (3.64%)
HBL 108.74 Increased By ▲ 0.24 (0.22%)
HUBC 117.25 Increased By ▲ 0.75 (0.64%)
HUMNL 6.64 Decreased By ▼ -0.06 (-0.9%)
KEL 4.43 Decreased By ▼ -0.03 (-0.67%)
KOSM 4.67 Decreased By ▼ -0.05 (-1.06%)
MLCF 35.85 Decreased By ▼ -1.05 (-2.85%)
OGDC 123.31 Increased By ▲ 0.01 (0.01%)
PAEL 23.10 Increased By ▲ 0.66 (2.94%)
PIAA 23.89 Increased By ▲ 1.67 (7.52%)
PIBTL 5.77 Increased By ▲ 0.02 (0.35%)
PPL 110.90 No Change ▼ 0.00 (0%)
PRL 27.62 Increased By ▲ 0.05 (0.18%)
PTC 15.25 Increased By ▲ 1.06 (7.47%)
SEARL 53.15 Decreased By ▼ -0.10 (-0.19%)
SNGP 63.33 Decreased By ▼ -0.42 (-0.66%)
SSGC 10.82 Decreased By ▼ -0.18 (-1.64%)
TELE 9.22 Increased By ▲ 0.27 (3.02%)
TPLP 10.98 Increased By ▲ 0.25 (2.33%)
TRG 71.75 Increased By ▲ 1.45 (2.06%)
UNITY 24.81 Increased By ▲ 0.61 (2.52%)
WTL 1.38 Increased By ▲ 0.02 (1.47%)
BR100 6,758 Increased By 59.8 (0.89%)
BR30 22,686 Increased By 67.9 (0.3%)
KSE100 65,540 Increased By 649.1 (1%)
KSE30 21,737 Increased By 200.9 (0.93%)

SAO PAULO: Fourteen analysts polled by Reuters on Thursday projected on average a record corn output of 113.05 million tonnes for Brazil this season, driven by a rise in planted area and sowing of the cereal within the ideal window.

However, analysts warned of potential revisions as the La Niña effect poses a threat for farmers’ second corn - which accounts for 70percent-75percent of Brazil’s entire output in the year - in certain center south states.

In the early part of the Brazilian corn season, when farmers planted their first corn in the summer, a severe drought from that weather pattern caused crop failure in states including Rio Grande do Sul, Parana and Mato Grosso do Sul.

According to analysts, adverse weather could persist during the development of the second corn.

Still, if the average projection in the Reuters poll is confirmed, Brazilian farmers will reap 30percent more corn than in the last cycle, when it was hit by drought and frosts, especially in the second quarter.

“The earlier start of the second corn season and higher soil moist, especially in the Cerrado region, leads us to expect a lower risk of a productivity drop in 2021/2022,” said Céleres analyst Enilson Nogueira. “Together with the rise in planted area, this should result in a bigger output.”

Marcela Marini, an analyst at Rabobank Brasil, cited a 77percent chance of a La Niña occurring in March, April and May, which can cause yield losses in Parana and in the south of Mato Grosso do Sul. These regions have already suffered soybean and corn crop losses.

“With this, despite the prospect of a good corn harvest, the weather during the second corn’s development phase will be crucial for achieving a record 2021/22 crop,” Marini said. Dry and hot weather likely pushed Brazil’s summer corn output to the lowest level in 20 years, Gabriel Faleiros, an analyst with IHS Markit, said.

Comments

Comments are closed.