July 9, 2008
Brazil expects record corn crop, 38 percent increase in winter wheat production
Brazil should produce 56 million tonnes of corn by the end of 2008, making it a record-breaking crop, the Agriculture Ministry said in a press release dated Monday (July 8, 2008).
According to the National Association of Grain Exporters, ANEC, Brazil should export 11 million tonnes of corn this year, roughly on par with last year's exports.
The main destinations for Brazilian corn are Asia, Chile, Peru and Colombia, according to Carsten Wegener, trade manager at ANEC.
Brazil's winter corn crop is also expected to be much larger than the year before, up 19.2percent to 17.6 million tonnes, according to the National Commodities Supply Corp (Conab).
Corn is Brazil's second-most-important crop behind soybeans, of which Brazil is the world's No. 2 exporter.
Wheat production is expected to rise strongly.
Conab estimated Brazil's winter wheat production will rise by 38.1percent to 5.3 million tonnes. Brazil plants wheat in the winter months. It is currently winter in the Southern Hemisphere.
Wheat planted area rose by 26.4percent to 2.3 million hectares. Brazil is dependent on Argentina for its wheat supply. But Argentina has been mostly closed to Brazilian wheat buyers as the country continues restricting commodity exports to curb inflation there.
Brazil plants wheat twice a year. The winter corn crop is the smaller of the two and is harvested from July to November. The main corn crop saw production increases of 8.9percent to 39.8 million tonnes. The harvest ended in June.
Rising output of Brazil's key staple grains could take pressure off inflation, hovering close to 6 percent over the last 12 months, according to Central Bank of Brazil data. The bank's inflationary target for the year was just around 4.5percent, but high grain and animal proteins have since changed that scenario.
Brazil is self-sufficient in rice and corn, but is a net importer of wheat.
Brazil's main crop, soy, rose by 2.5percent to 59.8 million tonnes.
