Low Corn Prices Prompt Brazil Farms to Plant More Soy

Soy field in Brazil Fair weather and bigger demand for food from overseas should contribute for Brazil's grain crop that started in August and should last until late July next year to exceed the previous one by up to 6.5 million tons.

The first survey of the 2009/2010 cycle – carried out by the National Food Supply Company (Conab) and disclosed October 7 – estimates a harvest of between 139 million and 141.6 million tons, growth of between 2.9% and 4.8% compared with the 135.1 million tons harvested in the previous crop.

The increase in production is a consequence of the recovery of productivity, taking into consideration that planted area should range from 47.35 million to 48.06 million hectares, a variation of between -0.7% and 0.7% compared with the 2008/2009 cycle, when drought in southern Brazilian states led to significant losses, particularly in corn and soy cultures.

"We are not expecting to have as many weather-related issues as we did last year. This helps to place Brazil closer to the record-high figure of 144.1 million tons," said the president of the Conab, Wagner Rossi, in a press release.

To him, the low market price of corn should lead some of the farmers to replace the grain with soy crops, which may see record-high output.

The Conab estimates that the planted area for soy should grow between 2.6% and 4.2% and may total 22.65 million hectares, nearly half the planted area for grain. The average productivity should increase by 6.3%, totaling 2,794 kilograms per hectare and generating a harvest of between 62.26 million and 63.27 million tons, growth of up to 10.8%.

The survey was conducted from September 14th to 18th in the South, Southeast and Midwest regions of Brazil. In the North and Northeast regions, planting starts in December, therefore the Conab used data pertaining to the previous crop and average productivity for the past five years, not taking atypical years into account.

ABr

Tags:

You May Also Like

Brazil Getting Ready to Make Stronger and Cheaper Concrete with Bagasse

Last week a team of Brazilian researchers from the University of São Carlos revealed ...

Egypt Discovers Brazil as Good for Business

Brazil’s exports to Egypt increased almost 35% last year and, if it depends on ...

Sinatra Revealed Me the Sounds of Brazil

Bossa nova combines the textures and rhythms of samba, jazz, 20th century classical music, ...

Brazil Has Never Seen Its Key Interest Rate So Low: 10.25%

The Central Bank of Brazil cut its benchmark interest rate Selic for a third-straight ...

Brazil Stock Market in Free Fall While Real Sinks to Lowest Level Since January

The Brazilian stock exchange index, Bovespa, fell 4.5% on Tuesday, September 9, hitting the ...

Brazil and US Join Efforts to Fight Sex Slavery

New action strategies for the war against human traffic are being organized by officials ...

Lula Tells Obama Haiti’s UN Mission Led by Brazil Can’t Take Care of Everything

Brazilian President Luiz Inácio Lula da Silva has suggested today, January 18, to the ...

Brazil’s New Finance Czar Goes to War Against Inflation and High Interests

Brazil’s new Economy Minister, Guido Mantega, said that Brazil needs "civilized interest rates" signaling ...

Best-seller Books, Plays and Movies

By Brazzil Magazine PLAYS RIO Os Ratos do Ano 2030 (The Mice from the ...

Charming Safety Shoes from Brazil

Fujiwara Equipamentos de Proteção Individual Ltda, a company from the city of Apucarana, in ...