Brazil crop agency cuts soy, corn production estimates

By Ana Mano

SAO PAULO, April 11 (Reuters) - Brazilian crop agency Conab reduced output projections for soy and corn on Thursday, citing adverse weather in top grower Mato Grosso state for an overall decline in soy production and a smaller planted area for corn.

Conab said Brazil will reap 146.522 million metric tons of soy in the 2023/24 cycle, 336,000 tons less than projected last month and 5.2% below last year.

Brazilian farmers have nearly finished harvesting their soybeans, and gradually their attention to the country's second corn crop, which is planted after the oilseed in the same areas.

Second corn sowing, which was finalized in big producer Mato Grosso and nearly done in Parana state, represents 70-80% of output depending on the year. It is also heavily exported in the second half of the year.

Brazil will harvest 110.964 million tons of corn, some 16% below last season given an area reduction, particularly for second corn, Conab said.

"The (expected) drop in total corn production is a result of the shrinkage of the corn area, with emphasis on the fall of the second corn area, together with lower projected yields," Conab said.

The agency projects a decrease of 8.5% in planted area for total corn and an 8.1% drop in total corn yields.

Second corn production was pegged at 85.6 million tons, more than 16% below last season, reflecting an 8.2% drop in the planted area, to 15.7 million hectares (38.7 million acres), according to Conab.

The agency projects an 8.9% drop in second corn yields.

Given the expectation for lower domestic corn production, Conab said Brazil will need to import 2.5 million tons in 2023/24 to meet domestic demand for the cereal, which is used as feedstock.

(Reporting by Ana Mano; Editing by Sharon Singleton and Barbara Lewis)