Estimate for corn harvest in Argentina increased — FAO

Prospects for the upcoming 2020 coarse grain harvests in the Southern Hemisphere (starting in March) are mixed, FAO informs.

Argentina’s corn crop is set to benefit from favourable rainfall and a second consecutive year of an above-average sown area, stimulated by high domestic prices and strong export prospects.

"In Brazil, the minor season corn crop is in the vegetative stage under good conditions, while the sowing of the main season crop has been delayed by the slow pace of the soybean harvest. In South Africa, improved rainfall in recent months and an increase in the planted area point to a rebound in production to a near-average level," analysts comment.

In the Northern Hemisphere, where winter cereals are expected to be harvested in early summer, a contraction in winter sowings is expected in the United States. Similarly, EU wheat plantings are likely to decline compared to last year, as untimely heavy rains hindered sowing in France and the United Kingdom while suboptimal growing conditions were experienced in some other countries.

"Official estimates confirmed a reduction in wheat plantings also in Ukraine, although favourable weather has augured well for yield prospects. By contrast, in the Russian Federation, official estimates show a record planted area for winter wheat, and the upcoming spring wheat area is also expected to expand from 2018/19," the report reads.

FAO’s new forecast for world cereal production in 2019 stands at a record high of 2 715 mln t, up by 2.3% (61.7 mln t) from the outturn in 2018. This month’s forecast remains nearly unchanged from December, as downward revisions made for wheat and rice production are offset by upward adjustments for corn and barley.

Earlier it was reported that since the start of 2019/20, staple grains export from Ukraine reached 36.78 mln t. As of Feb. 4, commodities shipment increased by 8.59 mln t from the comparative period of the previous year.