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Dryness in Brazil friendly to corn

A grain marketing consultant says continued dryness in Brazil is friendly to corn prices.

Dr. Michael Cordonnier tells Brownfield the outlook for second-crop Safrina corn is concerning if weather patterns stay dry.

“They’ve planted about six percent of that corn, which is record-fast. But, there are reports some guys are waiting for more consistent rains before they plant. That’s not a good scenario for the Safrina corn.”

He says the planting window doesn’t close until the end of February, but Brazilian farmers are in trouble if the second half of the rainy season is as disappointing as the first half.

“Brazil is the second-biggest corn exporter in the world, and if they stub their toe on the second crop of corn (which) is where all their exports come from, this could be much more supportive for the corn market.”

Cordonnier says if it remains dry in Brazil and there are some planting delays this spring in the U.S., corn prices will be positioned to improve.