Safras & Mercado announced on Friday that due to climate issues facing summer crops this year and reduced winter corn production, Brazil's corn production for 2023/2024 is expected to be 125.86 million tons, lower than the December forecast of 129.15 million tons.

If this prediction is confirmed, it will decrease by approximately 14 million tons from the record production of 140.5 million tons last year.

Pablo Molinari, a consultant for the company, stated that the reduction in production this time is due to climate issues related to the El Nino phenomenon, which has caused damage to the first season corn yield in southern Brazil. In addition, the expected planting area of second season corn has been lowered.

The company currently expects a corn planting area of 20.9 million hectares in Brazil, which is lower than the December estimate of 21.12 million hectares and a decrease of 6.2% from the 2022/2023 estimate of 22.28 million hectares.

The average corn yield for 2023/2024 is expected to be 6,020 kilograms per hectare, which is lower than the predicted 6,115 kilograms per hectare in December and also lower than the record breaking yield of 6286 kilograms per hectare in 2022/2023.

The company also lowered its first season corn production forecast from 26.39 million tons to 25.59 million tons; Because the expected harvest area is expected to decrease to 3.972 million hectares, lower than the 4.187 million hectares from the previous year and consistent with the predicted value in December.

The planting area of second season corn has been reduced to 14.62 million hectares, lower than the predicted 14.78 million hectares in December and a decrease of 5.5% from the previous year.

Molinari stated that the reduction in second season corn planting area is based on multiple factors, including lower corn prices and some states planting outside the ideal window. Therefore, the yield of second season corn is expected to decrease to 5,951 kilograms per hectare, which is lower than the estimated 6,029 kilograms per hectare in December and also lower than the 6407 kilograms per hectare in the previous year.

The company predicts a corn production of 87 million tons for headphones, which is lower than the December forecast of 89.1 million tons and also lower than the record breaking 99.1 million tons in 2023.

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