SOUTH AMERICA CORN WATCH: Brazil's first crop harvest starts; Argentinian plantation reaches 77.6%

In the week ended Jan. 6, Brazil's first corn crop plantation for 2023-24 progressed below 2022, and harvest had begun in some key regions. In Argentina, meanwhile, corn plantation was 77.6% completed in the week to Jan. 3, according to latest official data.

Brazil

Brazil's first corn crop sowing for 2023-24 reached 84.3% in the week ended Jan. 6, up from 80.4% in the week ended Dec. 30, showed data released from Brazil's food supply and statistics agency, Conab, Jan. 8.

Sowing progress, meanwhile, was below 90.1% reported in the corresponding week last year.

In Minas Gerais, crop development due to irregular rainfall and high temperatures, which have been affecting the region since the beginning of the cycle, was hampered. Sowing was reported near completion at 99.6% in the week ended Jan. 6, up from 99% in the previous week.

In Bahia, planting was being completed in the West region, but total progress was expected in the Center-South despite a delay in rains, taking it to 86%, down 14 percentage points on the year.

In Rio Grande do Sul, sowing was 92% completed, marginally below 93% last year, with crop development favored by weather conditions.

In Goiás, sowing was 95% completed, compared with 100% last year, with reports of improved crop conditions due to regular rains.

In Maranhão, planting had advanced to 37%, down 5 percentage points on the year. It was 30% completed in Piauí, down 35 percentage points from the previous year. Planting is just beginning in these provinces and better volumes of rain are required for the development of crops, Conab added.

In Santa Catarina, harvest began in the week ended Jan. 6, with most crops being still in the final reproductive stages. Compared with the corresponding week last year, when the harvest was yet to start, it progressed 3% in the week ended Jan. 6.

Similarly, in Rio Grande do Sul, harvest progressed 16% in the week ended Jan. 6, up 11 percentage points on the year. However, excessive rain and high cloud cover during the reproductive stage harmed the harvested crops, according to Conab.

First-crop corn in Brazil is planted from September through December and harvested over February-May, while second-crop corn is planted over February-March and harvested over June-July.

Brazil's first corn crop makes up just about 20% of the harvest, while the second corn crop represents around 77% of the country's total corn crop output.

Platts assessed Brazil corn FOB Santos at $211.41/mt Jan. 8, down $4.62/mt from the previous assessment, according to S&P Global Commodity Insights data.

Argentina

Argentina 2023-24 corn plantation reached 77.6% in the week ended Jan. 3, out of the total projected surface of 7.1 million hectares for the season, according to the Buenos Aires Grains Exchange.

BAGE reported a weekly plantation progress of 7.7 percentage points and a year-on-year rise of 7.6 percentage points.

Argentina 2023-24 corn crop plantation currently stands at 5,509,134 ha, according to BAGE Jan. 4.

Similarly, producers reported 97.5% of the planted area in normal to excellent conditions, down 2 percentage points on the week.

In Argentina, early corn is usually planted over September-October and harvested over April-May, while the late corn crop is sown over December-January and harvested over June-July.

Platts assessed Argentina corn FOB Up River at $209.84/mt Jan. 8, up 88 cents/mt from the previous assessment, S&P Global data showed.