Brazil corn crop seen worsening market glut

Sao Paulo

DON'T be fooled by the name. Brazil's so-called little crop is going to be bigger than ever, flooding an already oversupplied global corn market and further pressuring prices.

Forecasters increased output estimates this week to 81 million tonnes for the summer and winter growing seasons, as heavy rains prompted a cornfield growth spurt. The Porto Alegre-based research company Safras & Mercado is even more optimistic, expecting a record 83 million tonnes.

Global corn prices have slumped 24 per cent in the past year as bountiful harvests in two straight seasons boosted supplies to all-time highs. The prospect of another bumper crop in the US is already weighing on the market, and researchers said that the industry is…