May 07, 2010

Conab Confirms Record Grain Production in Brazil

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

In their May estimate, Conab confirmed once again a record grain production for the 2009-10 growing season in Brazil. They estimated the total grain production at 143.87 million tons, which is 8.7% more than the 135.13 million tons produced in 2008-09. The total grain production includes the production of soybeans, corn, sorghum, rice, dry beans, wheat, and other small grains.

Soybean production was estimated at 67.8 million tons, which is 10.7 million tons more than last year or an increase of 18.7%. Soybean acreage was estimated at 23.24 million hectares, which is an increase of 6.9% compared to 2008-09. Favorable weather during the growing season contributed to the nationwide yield of 2,920 kg/ha or 42.3 bu/ac. This represented an increase of 11.1% compared to the 2,629 kg/ha nationwide yield in 2008-09 (38.1 bu/ac).

Total corn production was estimated at 54 million tons or 6.2% more than last year. Of that total, full season corn crop was estimated at 33.9 million tons and the second crop of corn was estimated at 20.2 million tons, which is an increase of 16.8% compared to last year's second crop of corn.

The corn estimate may be revised downward in subsequent reports due to the fact that the survey for this report was conducted just as the safrinha corn crop in Mato Grosso was starting to suffer from a prolonged period of hot and dry weather. The survey for this report was conducted between April 22 and 28. Conab does not conduct actual field sampling, instead, they conduct interviews with cooperatives, rural syndicates, and public and private entities throughout the country.

The report indicated that Brazil's wheat acreage would be down in 2010-11 compared to 2009-10. The states of Parana and Rio Grande do Sul account for nearly 90% of all the wheat produced in Brazil and, but total wheat acreage was not estimated because wheat planting is just getting underway in southern Brazil. The total wheat production for 2010-11 was estimated at 5.1 million tons, which is up slightly from last year. Last year's wheat crop was adversely impacted by dry weather during planting and heavy rains during harvest that resulted in lower yields and poor seed quality. Brazil does not produce enough wheat to meet its internal demand the difference is made up by importing wheat primarily from Argentina.