Oct 01, 2010

Canola Harvest Starts in Southern Brazil

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

The production of canola in Brazil has been slowly increasing in recent years as farmers look for an alternative to wheat production as well as a new source of vegetable oil for biodiesel production. According to Conab, slightly more than 46,000 hectares of canola were planted in southern Brazil in 2010 with Rio Grande do Sul being the principal state producing 66% of Brazil's total production.

Canola production in Brazil is largely in the same areas where winter wheat is grown. It is grown as a winter crop and harvested in the spring. The canola crop in Rio Grande do Sul is now maturing and harvest is expected to start in early October and continue through the first half of November. Farmers will plant soybeans in the field after the canola is harvested. Domestic prices for canola in Rio Grande do Sul are very similar to soybean prices in the state. Canola is grown in northern Rio Grande do Sul as well as in western Santa Catarina and western Parana.

Canola production is increasing in Brazil for two primary reasons. First and foremost, it offers farmers in southern Brazil an alternative to wheat production. Canola seems to be well adapted to the climate of the region and yields thus far have been quite good. Secondly, canola oil is an attractive alternative to soybean oil in the production of biodiesel. Currently, 80% of the vegetable oil used in biodiesel production is soybean oil and the Brazilian government has been trying to develop alternative types of oil. In southern Brazil where the climate is sub tropical, canola production seems to hold the best promise for alternative vegetable oil production.