May 9, 2007

Conab: Brazil to harvest record corn crop of 51.1 million tonnes

Brazil's corn crop is expected to be a record-breaking 51.1 million tonnes in the 2006/07 season thanks to higher international and local corn prices, according to figures released Tuesday (May 8) by the National Commodities Supply Corp (Conab).

Brazil's last record crop was 47.4 million tonnes in 2002/03. The figure counts the total from both the fall and winter crops. Brazil's climate permits corn growers two planting seasons per year.

As US farmers expand corn planting for ethanol use, Brazil farmers are benefiting from higher corn prices and hoping to increase exports in the eventual absence of US corn from world markets.

Exports are put at roughly 7 million tonnes this year, according to government figures.

Corn is Brazil's no. 2 crop behind soybeans. Soy output for the season is seen at 57.5 million tonnes, bringing it closer to corn for the first time since 2003/04, when Brazil harvested 49 million tonnes of soybeans and 42 million tonnes of corn.

Corn was Brazil's top crop until 2001/02. Soy demand from China and high soy prices on the Chicago Board of Trade made soy surpass corn for the first time that year.