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Brazil's Second Corn Crop Estimate Cut Again As Yields Hit 5-year Low

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AgRural, a Brazilian agribusiness consultancy, on Tuesday announced a new forecast reduction for the country's second corn crop because of a severe drought, adding that yields are expected to touch a five-year low this season.

AgRural said in a statement that Brazilian farmers in the center south are now expected to produce 60 million tonnes of second corn, a 5 million-tonne reduction from a forecast in May and a 17 million-tonne reduction from AgRural's initial projection for this year's second corn crop.

"Expected average yields fell across all producing states," AgRural said. "For most areas ... rainfall came too late."

Last week, at least two Brazilian government agencies warned of droughts across the country as the nation faces its worst dry spell in 91 years, hurting grain cultivation and livestock and raising the risk of forest fires.

Mato Grosso, which is Brazil's largest grain state, had some degree of corn crop failure due to dry weather, though the situation there was not as bad as in other states as it received some rains in April and May, AgRural said.

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