October 8, 2007

Brazil 2007/08 grain output may hit record 138.3 million tonnes

Brazilian grain output for the 2007/08 crop year is estimated to vary between record high 134.9 million and 138.3 million tonnes, up from 131.5 million tonnes in the previous crop year, a study of the country's federal agricultural supply company Conab showed.

On-year increases are seen to vary between 2.6 percent and 5.2 percent on foreseen growth due to higher grain prices, which stimulate local farmers to produce more. The fluctuations are attributed to the yet too early time for more accurate projections, which could also be affected by weather conditions. This is the first grain output study of Conab for the 2007/08 crop year.

Soy, corn and cotton are the three crops that are seen to mainly contribute to the projected growth. Soy output is estimated at between 59.4 million and 61.3 million tonnes, up 1.6 percent and 4.9 pct respectively. The projected corn output stands at between 37 million and 38 million tonnes, up 1.7 percent and 4.6 percent, respectively. In turn, cotton output is seen to vary between 2.5 million and 2.6 million tonnes, up 2.8 pct and 8.5 pct, respectively.

Brazil is projected to increase its grain crops planted areas to between 46.7 million and 47.7 million hectares, up 1.2 and 3.4 percent, respectively.