November 8, 2011

Brazil cultivates record corn, soy crops

Brazilian farmers are cultivating record soy and corn crops this season in response to high international prices and successful harvests, according to grain analysts Celeres Monday (Nov 7).

Brazil's 2011/12 soy crop is seen at a record 75.5 million tonnes, up from the 75.18 million tonnes forecast in early October, Celeres said in its fourth forecast of the new grain crop.

With farmers having now planted 48% of the soy crop, Celeres data showed area to be planted with soy this season will expand to 25.11 million hectares from its October view of 25.01 million. Last season, farmers planted 24.14 million hectares, Celeres said.

The analysts' yield forecast is little changed from last month at three tonnes per hectare, less than the record 3.1 tonnes last year.

The 2010/11 soy crop that finished harvest in May put out 75.87 million tonnes.

Soy area would have expanded more than it has if it were not for international corn prices and the fundamentals for tight supplies and firm demand.

Celeres said producers would plant a record 63.14 million tonnes crop, up a stunning 17.5% from the 53.75 million tonnes harvested last season.

Planted area will grow to 14.7 million hectares from 13 million last season, and yields are expected to gain to 4.29 tonnes a hectare from 4.1 tonnes, Celeres showed in a report.

About 80% of Brazil's corn crop is typically consumed locally by a thriving poultry and pork industry, but Brazil has become an increasingly important exporter of corn in recent years. It is now the third largest exporter of the coarse grain after the US and Argentina.

In 2010, it exported nearly 11 million tonnes. Although it is unlikely to repeat that this year, it should export around eight million tonnes or more, according to most forecasts.