Brazil Drought Effect Downgraded

The severity of the effect of the ongoing drought in Brazil's Parana state, located in the southern region of the country, is worse than originally believed, according to a Dow Jones Newswires report.

Agroconsult's Fabio Meneghin, said, "The western part of Parana, near the border with Paraguay, has been particularly affected. I didn't expect it to be so bad."

Quoting one farmer from the region, the story said corn losses are estimated to be 40 percent on his farm, with soybean losses even higher, estimated to be about 60 percent.

There was no rain in the region for about 45 days, added the farmer.