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Global Hot Spots: Brazil to import more corn

Global Hot Spots: Brazil to import more corn
Smaller wheat harvest in France.

Brazil seeks to import U.S. corn as its crop shrinks –Attache

Brazil's Agriculture Ministry is working to gain government approval to import certain varities of genetically modified corn from the United States to ease grain shortages and bring down high domestic corn prices caused by this year’s smaller crops, USDA’s attache said.

“The second “safrinha” crop is looking worse as the harvest continues and there are fears that Brazil will run out of corn by 2017,” the report said. Dry conditions this year hurt corn production.

Related: 9 things to know about safrinha corn

Less wheat in France, less corn in Brazil.

The Ministry of Agriculture, Livestock, and Food Supply said on Aug. 3 that it will seek approval of the National Biosafety Technical Commission (CTNBio) to allow imports of genetically modified corn from the United States. The Agriculture Ministry said it wants to ensure the supply of grain in the country, but only for animal feed used by breeders of poultry and pork and milk producers until December 2017.

Brazil grows a number of GMO crops including corn, but has restricted imports of GMO varieties.

In a Reuters report, Brazil’s government in early August lowered its forecast for the 2016 winter corn crop by 1.1% to 42.59 million metric tons from its July forecast of 43.05 million as drought continues to weigh on the final harvest numbers.

Crop supply agency Conab forecast Brazil's total corn output, including the summer harvest, at 68.48 million metric tons, down from July's 69.14 million and last year's 84.67 million. Exports of corn this year will fall to 20 million from 30.17 million last year, it said.

French wheat crop to lower EU harvest, exports - Reuters

Consultancy Strategie Grains sharply reduced its forecasts for European Union soft wheat production and exports this season because of the smaller harvest in France, according to Reuters.

EU soft wheat production was pegged at 137.9 million metric tons, down 7.7 million from its previous monthly estimate and 9% percent below a record 2015 crop, Strategie Grains said.

The production downgrade was mainly due to a combined 7.5 million ton cut to expected output in France, Germany and the UK, the EU's three largest wheat growers where wet, overcast weather hurt crops at the end of the growth cycle.

"In the west EU countries, yields are disappointing (UK, Germany, Benelux) and indeed disastrous in France, with wheat and barley yields down by 15-30% on last year," Strategie Grains said in a monthly report.  The consultancy cut its French wheat estimate by more than 6 million ton to 29.9 million ton as it lowered its forecast of the average yield to 5.74 tonnes per hectare from 6.95 last month.

In contrast, good wheat yields were reported in Spain and Italy and in central and southeast European countries including Romania and Bulgaria, it said.

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