July 9, 2009

Brazil is expected to harvest 133.3 million tonnes of grain in 2009, down 8.7 percent from the 146 million tonnes last year, according to a study by the Brazilian Institute of Geography and Statistics (IBGE).

The IBGE said the projection is lower than the previous one due to losses in the corn crop and a reduction in estimates for rice, beans and soy crops.

In 2009, Brazil's acreage will fall to 47.2 million hectares from 47.4 million hectares last year. Soy acreage will increase 2.1 percent while corn area will fall 4.3 percent.

All regions will register a fall in grain production this year, with the southern region having the largest crop at 53.2 million tonnes but down 13.3 percent on-year, according to the IBGE.

The Midwestern region will see grain crops falling 6.7 percent on-year to 47.4 million tonnes. The southeastern region's crop will drop 3.9 percent to 16.9 million tonnes, while the northeastern region's crop will decline 2.8 percent to 12.1 million tonnes. The northern region's crop will sink 1.7 percent to 3.7 million tonnes, the institute said.

Out of 25 products included in the study, 14 are projected to register a production fall this year, including soy by 5.1 percent, corn by 15.7 percent and cotton by 24.3 percent.

Brazil is the world's second largest soy producer, and some analysts have warned that crop losses in the country could temporarily boost world soy prices.