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Yield growth supports rapid expansion of Brazilian corn production

Yield growth supports rapid expansion of Brazilian corn production
Rising yields have been the primary driver of growth in Brazil’s corn production since the mid-2000s. Production gains have allowed Brazil to meet rising domestic corn demand, as well as emerge as a major corn exporter. New high-yielding varieties, the introduction of GMO corn, improved cultural practices, and a shift to higher-yielding land has supported long-term yield growth.  A large share of second-crop corn is planted following soybeans in the frontier agricultural State of Mato Grosso, where corn production quadrupled over the past decade.  In 2011/12 and 2012/13 (March/February marketing year), above-average rains in Mato Grosso pushed corn yields and production to record levels.  For 2013/14, lower corn prices caused reductions in corn area and, with the assumption of more normal weather, corn yields are forecast below the 2012/13 record.  Brazil is the world’s third largest corn producer after the United States and China.  Brazil became the world’s largest corn exporter in 2012/13 when the U.S. corn crop was damaged by drought, but is forecast to be the second largest exporter in in 2013/14. Find additional analysis of corn market developments in Feed Outlook: March 2014.

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Last updated: Thursday, March 27, 2014

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