Adding to the list of global supply chain concerns, Brazil’s ongoing drought has elevated, threatening its top grain-producing state. Facing its driest April in 17 years, a key second corn crop could see drastic impacts. The Brazilian state of Mato Grosso is expected to see 40 million tonnes of its second corn crop, accounting for nearly half of Brazil’s total production of 88.5 million tonnes. Drought in the region where prices area already high could further hurt exports and domestic supplies, driving prices even higher.

Rainfall in the state accumulated 30 millimeters (1.18 inches) in April, 70% below what the state’s average over the past decade. A neighboring state of Mato Grosso only received 12.5 millimeters. Brazilian farmers continue to worry about the continued dry forecasts.

Read more on drought-impacted corn acres in Brazil here.

This abstract references reporting completed by Roberto Samora; Writing by Gabriel Araujo; Editing by Brad Haynes and Alexander Smith.

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