August 4, 2004

Soybean Planted Area To Rise In Brazil's Parana Region

Soybean planted area in Brazil's No. 2 producing state of Parana will rise 3.2% to 4.064 million hectares in the coming 2004-05 season (October-September).

The first estimate released by the state agricultural secretariat is broadly in line with the federal government's forecast of 3.936 million hectares.

Soybeans will cut into area previously used for corn, said Vera Zardo, agronomist at the southern state's agriculture department. The preference is based on price and the greater liquidity of the soybean market.

"It's always a problem to sell corn," said Zardo.

Corn planted area is expected to fall 4.3% to 1.288 million hectares in 2004-05.

Soybean production is tentatively estimated at 12.36 million metric tons, up 25% from 9.90 million metric tons from the drought-hit last crop.

Main-crop corn output is seen dropping 3.8% to 7.26 million metric tons.

The federal government expects soybean area across Brazil to grow 15% to 21.244 million hectares, fueled by aggressive expansion in the frontier states of the center-west and the northeast.