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October 11, 2013

Third Year Mato Grosso Largest Grain Producing State in Brazil

With the release of Conab's first official estimate of the 2013/14 growing season in Brazil, the state of Mato Grosso has solidified its position as being the number one grain and fiber producing state in the country for the third year in a row. The state is projected to be Brazil's number one producer of soybeans, corn, and cotton in 2013/14. The total grain production in the state is expected to be 48.3 million tons in 2013/14 which is 5.4% more than the 45.9 million tons produced in 2012/13.

The soybean acreage in the state is expected to increase approximately 6% from 7.81 million hectares to 8.28 million hectares with the total production expected to increase 9% from 23.5 million tons to 27.7 million tons. If the soybean yields come in as good as expected in Mato Grosso, the state will represent approximately 29% of the total soybean production in Brazil.

Corn is the second biggest grain crop in the state and nearly all the corn is produced as a second crop (safrinha) following soybeans. Conab did not conduct a new survey looking at the 2013/14 safrinha corn production, but simply carried forward last year's corn production of 20 million tons.

Cotton acreage in the state is expected to increase 26% from 475,000 hectares to 599,000 hectares and the total cotton production is expected to increase 23% from 737,000 tons to 905,000 tons.

Rain-fed rice production in the state is also projected to increase nearly 9% from 456,000 tons last growing season to 497,000 tons in 2013/14. The rice acreage in the state is expected to increase 11% to 158,000 hectares. The number one rice producing state in Brazil is Rio Grande do Sul where all the rice is flood irrigated.

Agriculture production as a whole continues to expand in Brazil with the country now projected to surpass the United States in soybean production and come in third in corn production behind the United States and China. Brazil is already the world's number one producer of orange juice, coffee, sugar, beef cattle, and it is near the top in pork and poultry exports as well.

With the rapid advance in grain production, the country has struggled to upgrade and expand its infrastructure to accommodate the crush of grain trucks on the nation's highways and at its port facilities. Nearly all the new grain production in recent years has been in the interior of the country and a long way from export facilities. Approximately 60% of the grain makes its way to export facilities by truck which is the most expensive way to move bulk commodities.