Conab reports higher Brazil corn harvest and strong demand for corn ethanol

Brazilian second-corn producers are expected to increase their production by 11% during the 2024/25 growing season, according to Conab. The agency cited good weather conditions in the key growing regions as well as strong demand for corn ethanol from domestic producers.

Conab's May crop report states that farmers have completed sowing second-corn. This is the corn planted after soybeans harvested on the same field. Conab estimated this year's production at 99.8 millions tons.

Rainfall favored the development of second-corn crops and increased yields in most regions. However, in some states, such as Minas Gerais or Mato Grosso do Sul, dry spells affected production potential at the start of the planting period. Conab stated that March and April showers helped to recover some areas, and also favored the later-sown second-corn.

Conab estimates 89.3 millions of tons of corn harvested in 2024/25 will be consumed within the country by 2025. This is an increase of 6.3% over the previous harvest due to the growing production of corn-ethanol.

According to Conab, Brazil's corn imports will be limited to 34 million tonnes this season, the same as in previous estimates.

The Brazilian soybean production estimate has been revised to 168.34 millions tons from 167.87. This confirms the record production of the world's biggest exporter and producer.

All eyes are focused on the second-corn that Brazilian farmers will export primarily in the second half year to compete with the U.S. products in the global markets.

Conab estimated that Brazil's corn production will reach 126.87 millions tons this year, an increase of nearly 10% over the previous year. Yields are also expected to rise by 8.1%. (Reporting and editing by Ana Mano, Jan Harvey and David Evans).

(source: Reuters)