Brazil's Corn Planting Delays Threaten Global Supplies

Brazil's corn planting is significantly delayed, raising concerns about global corn supplies, which are already at a decade low. As of late January, only 1% of the second corn crop area in Mato Grosso was planted, the slowest pace since 2011, due to untimely rains affecting soybean harvests. The second corn crop accounts for nearly 80% of Brazil’s total production, and both Mato Grosso and Paraná, which together produce two-thirds of this crop, face risks of poor yields if planting does not progress swiftly. Meanwhile, the broader grain market is responding to supply issues from South America, with corn and soybean futures in Chicago declining amidst these concerns. The strengthening US dollar and reduced Russian export forecasts further complicate the landscape, pushing grain prices downward. As Brazil navigates these challenges, the potential for increased imports from the U.S. rises, should their production falter significantly.