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Brazil Expecting Record Grain Crop, Up 5% from Last Year

Soy plantation in Brazil According to Conab, the Brazilian Supply Corporation, Brazil expects the coming 2009/2010 grains crop to reach 141.1 million tons. This would represent an increase in the range of 2.9% to 4.8% over the 2008/09 record harvest of 135.16 million tons.

The extra 6.5 million tons can be attributed to several factors, among which higher yields, increased acreage (0.7% to 48.06 million tons) and prospects of better weather conditions

"We hope not to have so many climate problems as last year. This would help Brazil reach a new record of 141.1 million tons," said Wagner Rossi head of Conab.

Last year the south and southwest of Brazil suffered a severe drought, which caused significant losses for corn and soy beans, particularly in Mato Grosso do Sul.

Low prices for corn will also turn farmers to soy-bean, which is expected to increase acreage between 2.6% and 4.2% reaching 22.65 million hectares, almost half of Brazil's agriculture farmland.

Soybean yields are expected to increase 6.3% to 2.794 kilos per hectare with a harvest of 62.26 to 63.27 million tons which could represent a 10% increase, according to Conab.

Cotton and rice will also suffer from soybean price competition with a lower production and area planted.

Cotton will see the crop drop 10.6% and acreage 4.4%, anywhere from 753.400 to 805.600 hectares with a harvest between 2.89 and 3.1 million tons.

Rice which this year experienced a record production is forecasted to drop 3.9% to 12.15/12.27 million tons although it will retain the area planted.

Mercopress

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