Conab sees higher Brazil corn crop, strong demand from corn ethanol mills

By Ana Mano

SAO PAULO, May 15 (Reuters) - Brazilian second-corn farmers are poised to increase production by some 11% in the 2024/25 season, national crop agency Conab said on Thursday citing good weather in key growing regions and strong demand from domestic corn ethanol producers for a good chunk of the supply.

In its May crop report, Conab said farmers have finished sowing their second-corn, which is planted after soybeans are harvested in the same fields. It pegged this year's output at 99.8 million tons.

In most second-corn producing regions, rainfall favored crop development and boosted yields, even if in states like Minas Gerais and Mato Grosso do Sul dry spells affected the crop's production potential in the beginning of the planting season. March and April showers, however, helped in the recovery of part of the areas and favored the second-corn sowed later, Conab said.

Regarding demand, Conab estimates that 89.3 million tons of corn from the 2024/25 harvest will be consumed domestically throughout 2025, an increase of 6.3% compared to the previous harvest, driven by growing production of corn ethanol.

Domestic consumption will limit Brazil's corn exports this season to 34 million tons, unchanged from the previous forecast, according to Conab's new report.

The agency has also adjusted its production estimate for Brazil's soybeans to 168.34 million tons from 167.87 million tons, confirming record production in the world's largest exporter and producer of the oilseed.

At this time tough, all eyes are on second-corn, which Brazilian farmers will mainly export in the second half of the year, competing with the U.S. product in global markets.

Conab said Brazil's total corn production this year will total an estimated 126.87 million tons, up nearly 10% from the previous year as yields rise by 8.1% on average.