Paraná Crop Conditions Stable
DERAL reported Paraná crop conditions at 69% good to average unchanged from last week and below 84% last year.
13% of the safrinha crop was still in the development stage down from 24% last week.
6% of the crop has matured, up from 3% last week, while 51% was flowering, and 29% was grain filling.
DERAL last estimated the second corn crop at 12.2 million tonnes, compared to private estimates of 8-10 million and 12 million last year.
Rain was reported earlier in May in Parana some improvement in crop conditions did result briefly.
Additional rain is expected in this coming week that will further bolster soil moisture and improve late season crop conditions.
FBN’s Take On What It Means: The coming week of rain will further raise soil moisture and improve crop conditions, but the lateness of the season is going to limit the benefit. Considering the smaller crop, Brazil will likely import more corn than usual this year, and not export as much. This could create more demand for US supplies into the summer months.
EU Crop Monitor Raises Winter Crop Yields
MARS, the EU crop monitoring unit, raised yields marginally for winter grains in its latest report.
Winter wheat, barley, and rapeseed yields all were raised versus previous outlooks despite the concerns for the cold snap earlier this year.
Soft wheat yields are seen averaging 5.9 tonnes per hectare, which would be 3.6% above last year and 3.9% above the average.
Barley yields were raised marginally to 4.89 tonnes per hectare, which would be 2.5% above the average.
Rapeseed yields were boosted marginally as well versus the April forecast and are seen at 3.21 tonnes per hectare.
Cold weather hampered flowering rapeseed stands but no major impacts so far are yet reported for yields. In some parts of the EU, such as Poland, the crop was not yet flowering when the cold snaps occurred.
FBN’s Take On What It Means: The yield report showed no major changes versus April but the key take away is that yields did not diminish in the latest month for the EU. Across the board, yields are set to be above average for grains. This will raise competition, especially on the wheat export front.
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