Many times, when we think about South America, we don?t necessarily think about frost. Especially when it comes to the countries that are bordering on the Gulf of Mexico and the Caribbean. This doesn?t mean that they cannot be subject to strange weather patterns, just like we are. Brazil?s climate allows them to seemingly produce crops year-round. However, they still run the same risks that we do, and we have seen a part of Brazil?s second corn crop become damaged by frost. So damaged that one expert is calling it a ?disaster.?
The first wave of Brazil?s frost came at the end of June and the beginning of July. The next wave hit just a few days ago. Dr. Michael Cordonnier is President of Corn and Soybean Advisor Inc. He says Brazil hasn?t seen these kinds of temps in decades.
Brazil?s crop was behind the eightball from the start. It got in late due to weather, then was hurt by a historic drought. Questions were already being raised on the crop?s quality. Now, with the frost, producers are really against the ropes. Cordonnier says it would be like us getting a frost right now in the United States.
This doesn?t mean the whole crop is completely wiped out. Cordonnier says that he still sees some fields averaging 115 bpa. The problem lies in the amount fields that are going to be a total loss.
Brazil has corn at about $8.50 a bushel, and exporters are paying penalties for breaking contracts. Breaking the contracts allows them to sell the corn domestically and make more money. This will likely lead to Brazil becoming an importer over an exporter.
Forecasts continue to show dry weather and delayed rains for their upcoming planting season.
