Brazil: Grain Output Strong

Avatar for Matt Hopkins By Scott C. Lucas|26 March 2007

Forecasts for corn production in 2006/07 reached 48 million metric tons (MMT), and production for 2007/08 is expected to continue to be strong, at 47 MMT as farmers continue to take advantage of strong export opportunities.

Rice forecasts for 2006/07 are at 750,000 metric tons (MT). Tightening domestic supply is expected to result in slightly higher area and production in 2007/08, at 3.1 million hectares (Ha) and 8 MMT respectively.

Production Zones

Paraná is the largest corn producing state in Brazil, with nearly a quarter of the country’s production. Approximately 90% of its production is accomplished in the main (1st) crop, which is harvested between February and April. The Center-West region, which accounts for another 20% to 25% of Brazilian production, produces mostly safrinha corn (a smaller, second crop). This corn is planted in February and March, immediately behind the harvested soy.

The first crop of the 2006/07 season had a 1.8% reduction in area from the year before due to low prices, but an expected 14.6% increase in production as a result of very good weather conditions. Nearly half of this crop has already been harvested. The second crop, now being planted, is experiencing a significant (17%) increase in area despite being delayed by rain. This increase is largely motivated by high world prices and the expectation of good export opportunities as more US corn is diverted to ethanol production. Some reports indicate that demand for corn seed is so high that the best seed varieties have already been purchased and only less productive varieties are still available to farmers.

Top Articles
Sustainable Podcast: Jason McGarrh, VP of Agriculture at Locus FS, on the Value of Biosurfactants

World prices are expected to remain strong in the coming two years as a result of rising demand for ethanol. As a result, Brazilian farmers are expected to continue planting large amounts of corn, with the majority of area expansion found in the Center-West’s safrinha crop. Production for 2007/08 is anticipated to reach 47 MMT, a slight reduction from the current year’s forecast, as a result of yield more in line with historical trends.