November 17, 2006

Brazil sees lower 2006/07 soy, cotton and corn area in Sao Paulo

The planted area for soybeans, cotton and corn in the 2006/07 crop in Sao Paulo state will be reduced due to credit problems in rural Brazil, the state's Secretary of Agriculture said Thursday (Nov 16).

Sao Paulo is Brazil's fifth-largest cotton-producing state. The Rural Economy Institute, or IEA, under the Secretary of Agriculture said that cotton producers have moved production to the centre-west states, where the bulk of Brazil's cotton is grown. As a result, cotton fields are expected to see a 25 percent reduction to 40,621 hectares. The number is slightly higher than the 36,800 hectares the National Commodities Supply Corp (Conab) estimated earlier this month. National cotton plantings are seen expanding by 20 percent in 2006/07.

Sao Paulo, the no. 3 corn-producing state in Brazil, will reduce corn fields by 7.8 percent to 704,991 hectares. The number is much lower than Conab's estimate of 788,000 to 804,400 hectares. Brazil's national corn planting intentions are seen down by 2 percent to 12.8 million hectares.

Sao Paulo isn't a major soy grower, but it is expected to reduce soy plantings by 20 percent to 549,773 hectares. The number is well above the national average of soy crop reduction, seen currently at 5 percent. Brazil is expected to plant around 20 million hectares of soybeans in the 2006/07 crop.