February 2021 South America Production Report

  • With the season progressing to the start of harvest, Indigo has updated its forecasts for corn and soybeans in Brazil and Argentina.
  • In Argentina, corn and soybeans forecasts are now at 6.6 metric tons per hectare (mt/ha) and 2.7 mt/ha, both below the 10-year average. 
  • In Brazil, the corn forecast has persisted since last month at 5.8 mt/ha, while the soybean forecast has increased slightly to 3.3 mt/ha.

February 11, 2021. Uneven weather in South America has led to dips, rises, and stabilization in the forecasts for corn and soybeans throughout Brazil and Argentina. Argentine has seen a reduction of 0.7 mt/ha and 0.3 mt/ha respectively since last month, due to hotter temperatures and sporadic rainfall caused by La Niña. Brazil, meanwhile, has seen an unchanged corn forecast since last month and a slight increase of 0.1 mt/ha in soybeans. Precipitation has increased and temperatures cooled in many Brazilian states, leading to new highs in crop health for key producing regions such as Mato Grosso do Sul. 

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As Argentine production has dipped, soybean prices continue to reach record highs on the global stage. This includes an increase in U.S. demand for soybeans and soybean meal – and even corn – since late December. Brazil and Argentina command a 64% stake of the global soybean export market.

Looking ahead, while more rain has helped the health of Brazilian crops, it is also delaying soybean harvest – which in turn delays planting of Brazil’s second corn crop, safrinha. Late planting could expose this crop to drier weather during emergence.

Interested in learning more? Watch the webinar below, featuring a deep dive on South American production and USDA revisions from analysts and scientists on our GeoInnovation team.

 

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