# Drought Hits Brazil Corn; Feed Costs Could Squeeze Meatpacker Margins - AgWeb

> Dry weather and late planting are hurting Brazil's second (safrinha) corn crop, the country's worst drought in five years. Brazilian corn prices more than doubled in the past year to a record 100 reais per 60-kilo bag.

- Date: 2021-05-13 · published 2021-05-13T12:00:00.000Z
- Category: weather · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/46924-drought-hits-brazil-corn-feed-costs-could-squeeze-meatpacker-margins-agweb
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md)

## Why it matters

Lower Brazilian corn supply and high feed costs squeeze protein producers' margins and can lift global corn and meal prices, as happened after the 2016 drought.

## Read by commodity

- SBM: bullish ▲
- CORN: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2018-05-02 | [Brazil drought hits second-corn, dry spell persists](https://feedsoft.ai/events/64859-brazil-drought-hits-second-corn-dry-spell-persists.md) | +1.4% | +1.9% |
| CORN | 2022-05-01 | [Brazil’s Drought: The Trigger that Could Take Corn Prices Higher?](https://feedsoft.ai/events/13731-brazil-s-drought-the-trigger-that-could-take-corn-prices-higher.md) | -8.1% | -2.4% |
| CORN | 2022-12-19 | [Drought hits Brazil corn in key southern state – StoneX](https://feedsoft.ai/events/13681-drought-hits-brazil-corn-in-key-southern-state-stonex.md) | +1.3% | +2.9% |
| CORN | 2021-05-13 | [Drought impacting most Brazilian corn farms](https://feedsoft.ai/events/46927-drought-impacting-most-brazilian-corn-farms.md) | -7.7% | -2.2% |
| CORN | 2025-01-29 | [Brazil's slow corn planting may further squeeze tight world stocks](https://feedsoft.ai/events/13518-brazil-s-slow-corn-planting-may-further-squeeze-tight-world-stocks.md) | +1.0% | -1.0% |
| SBM | 2024-07-03 | [Brazil’s Second Corn Crop Slightly Smaller Amid Drought](https://feedsoft.ai/events/13560-brazil-s-second-corn-crop-slightly-smaller-amid-drought.md) | +1.3% | -3.9% |
| SBM | 2022-01-27 | [Corn and soybean farmers in Brazil hit by huge losses amid droughts - Fastmarkets](https://feedsoft.ai/events/13748-corn-and-soybean-farmers-in-brazil-hit-by-huge-losses-amid-droughts-fastmarkets.md) | +7.8% | +15.4% |
| SBM | 2022-07-25 | [Could high temperatures, drought hammer 2022 corn, soybeans?](https://feedsoft.ai/events/13347-could-high-temperatures-drought-hammer-2022-corn-soybeans.md) | +12.5% | +4.3% |

## Sources

- agweb.com: https://www.agweb.com/news/crops/corn/drought-hits-brazil-corn-feed-costs-could-squeeze-meatpacker-margins

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.