Experts again increased the forecasts of soybean and corn harvests in Brazil

In Brazil, the abundant rainfall of the last three months will allow a record harvest of soybeans, and in case of favorable weather in April-June, a record harvest of corn.

According to the estimates of the Conab agency, as of April 1, soybeans in Brazil were harvested on 74.5% (81% last year) of the 43.5 million hectares sown, and 96.3% of the planned areas were sown with corn of the second harvest. Thanks to favorable weather in the main producer state of Mato Grosso, the work is almost complete.

StoneX experts, due to the expansion of areas for harvesting and good yields, compared to previous estimates, increased the forecast of soybean production in Brazil in 2022/23 MR by 3 million tons to 157.7 million tons, which will exceed last year's figure by 32.1 million tons. Soy exports are expected to reach 96 million tons, which is 17.3 million tons higher than in 2022. And ending stocks will grow from 5.8 to 9 million tons compared to last year.

Analysts of the SAFRAS&Mercado agency have increased the forecast of corn production in Brazil in 2022/23 MR from 125.3 to 130.3 million tons compared to January estimates. At the same time, the forecast for the production of corn of the first crop was left at the level of 24.1 million tons, and of corn of the second crop - increased by 4.5 million tons to 92.2 million tons thanks to the increase in the area sown in the state of Mato Grosso.

Soybean and corn prices will remain under the pressure of record harvests in Brazil for the time being, but they will be supported by data on plantings in the United States, Brazil's main competitor for the export of these crops.