MercoPress. South Atlantic News Agency

Prospects of another record grains crop for Brazil: 141.1 million tons

Soy-beans again the queen of Brazil’s agriculture with almost half the farmland

Brazil expects the coming 2009/2010 grains crop to reach 141.1 million tons, which represents an increase in the range of 2.9% to 4.8% over the 2008/09 record harvest of 135.16 million tons, according to the country’s National Supply Corportion, Conab.

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 Matto 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.