July 22, 2014

FAO: Good corn and wheat crops for Brazil



Production forecasts for Brazil's second season or safrinha corn crop have been raised, and the United Nations Food and Agriculture Organisation (FAO) predicts a likewise bumper wheat crop.


The output for the safrinha crop is now put at 45 million tonnes, slightly below last year's crop. The revised forecast is due to a lower than earlier anticipated decline in plantings and better yields. The first season corn harvest, which concluded in June, was estimated at good levels despite lower than expected yields because of dry weather earlier in the season. The 2014 aggregate corn production is forecast at 76.2 million tonnes, 5% below last year's record high, but still well above the average level.


Driven by the forecasted fall in this year's aggregate production, as well as strong competition from the United States and Argentina, corn exports in the 2014/15 marketing year (April/March), are forecast to dip by 4% on-year, still well above the country's five-year average.


For wheat, planting of the 2014 crop was concluded in June, under generally favourable weather conditions. Supported by high domestic and regional prices, the area planted is estimated more than 20% above the good level of 2013. Assuming normal weather conditions in the following months, official forecasts suggest a production of 7.8 million tonnes, way above last year's level and the highest output in a decade.