South America set for big corn crops

Big corn crops and competitive prices from South America are expected to mean more export competition for the United States.

Brazilian ag consultancy AgRural says 44% of Brazil’s record large second corn crop has been harvested and the crop is far enough along that a recent frost isn’t expected to significantly impact yields, with second crop production projected at 75.7 million tons.

According to Successful Farming, 61% of Argentina’s corn crop is harvested, with this year’s corn crop potentially edging out soybean production for the first time in 20 years at 57 million tons.

U.S. corn prices have surged recently on the uncertainties about this year’s crop and while Brazil has followed Chicago higher, prices could fall as harvest advances, and DTN says Argentina’s corn price for export is fifty cents per ton cheaper than U.S. supplies. Ukraine has also become a significant exporter of corn with prices currently thirty cents cheaper than the U.S.

New USDA supply, demand, and production estimates are out Thursday.