Brazil Corn-Crop Estimate Cut by Analyst Cordonnier on Dryness
Forecast cut 1.2% to 82m mt from week earlier because of dry, hot weather in past several weeks and little rain expected, Michael Cordonnier, president of Soybean & Corn Advisor Inc. in Hinsdale, Ill., says in report to clients.
«I have a lower bias going forward because early end to the rainy season this year in central Brazil is anticipated.» Brazil may buy U.S. corn if government temporarily eliminates 10% import tariff for supplies from outside Mercosul trade group. “It all but seems assured that the tariff will be lifted, making it feasible to import U.S. corn into northeastern Brazil”. Window for imports “will probably close at the end of June or the start of July,” when harvest of second-season crop starts. Tariff elimination would make U.S. grain cheaper than supplies from Argentina.
NOTE: On April 12, USDA forecast Brazil’s production at 84 mt with imports at 600k.