Brazil’s second corn crop this year is going to be a big one, and that’s disappointing news for U.S. producers. Matthew Kruse is president of Commstock Investments.

“As they get some initial yield information coming in, some saying that estimates are 800 million bushels above what USDA and CONAB is at, which obviously would not be very friendly in the market.”

Kruse says this will be a record-breaking harvest for Brazil’s corn producers.

“I did get some videos from a friend in Mato Grosso, and he was sending me some videos of his yield monitor that were showing yields that were 200 and 220 bushels per acre. Now if you’re in Iowa, that probably wouldn’t be that big a deal, but for second crop corn in Brazil, it’s outstanding, and by far the best that they’ve ever experienced.”

The low prices in Brazil will make it very competitive with U.S. corn on the global market.

“It’s collapsing the cash market in Brazil because you have this massive crop coming online right now. And so prices have dropped to like $3.00, $3.10, right now cash corn in central Mato Grasso.”

Kruse says wet conditions have put harvest behind there, with about 20% complete at the end of June.