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June 3, 2021

Western Parana Corn Yields Could be Down as Much as 35%

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

The safrinha corn in the municipality of Cascavel in western Parana has been negatively impacted by a series of weather problems. The crop was planted much later than normal and then dry weather slowed its early development. More recently, a frost occurred last week impacting the crop even more. The state of Parana is Brazil's second largest safrinha corn producer responsible for approximately 17% of Brazil's safrinha production.

The Director of the Coopavel Cooperative in Cascavel indicated that the dry weather has reduced the corn yield potential by at least 30%. Additionally, a frost that occurred last week probably reduced the yield potential another 5%. Originally the corn yield was expected to be in the range of 100 to 120 sacks per hectare (95 to 114 bu/ac) but yields are now expected to be in the range of 65 to 78 sacks per hectare (62 to 74 bu/ac).

Since the corn was planted, the region has only received about half its normal precipitation with most of the rainfall occurring shortly after planting. From March 15th to May 31st, the region has only received only 15 mm of precipitation (0.6 inches).

The corn harvest will not start until July, so additional yield losses could still occur if there are frosts during the month of June.

On the positive side, the high domestic prices for corn will compensate for some of the yield losses. The current spot price for corn in western Parana is approximately R$ 84.00 per sack (approximately $7.20 per bushel), which is 180% more than the price of corn in June of 2019. While these high prices are good for corn producers, they are negatively impacting chicken, hog, and dairy producers in the region.