April 6, 2007

Brazil grain production to hit record 131.1 million tonnes in 2006/07

Brazil's 2006/07 grain production is expected to rise 8.6 percent on-year to a record high of 131.1 million tonnes, the country's federal agricultural supply company Conab said in its latest forecast announcement.

Conab based its forecast on favourable weather conditions for domestic crop farming, with soybean, corn and cotton seen to account for the bulk of the projected growth.

Soybean output is expected to increase 8.5 percent on-year to reach 58 million tones. Corn production is forecast at 51.1 million tones, up 20.1 percent on-year, while that of cotton is estimated at 2.24 million tones, up 32.9 percent on-year.

On the other hand, domestic grain planted area is seen to fall by 2.9 percent on-year to 46 million hectares.