Brazil’s Conab agency announced reduced output estimates as heat and drought damage crops across the country. Corn production is estimated to be 75.5 million tons down from a forecast last month of 79 million tons with estimated yields 1.9% lower than the previous season, and soybean production estimates were slightly reduced from 90.3 million tons to 90 million tons. Conab predicts that the worst drought conditions that Brazil has seen in decades will continue through the southeast and central west of the country through the month. Reduced planting has also affected possible corn output, and if the adverse conditions continue planting of the second season crops of corn and soybeans may be affected as well. The drought has also affected the country’s coffee and sugar production pushing up global prices.
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