Mar 15, 2010

Parana Resumes Position As Top Grain Producing State In Brazil

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

The two leading grain-producing states in Brazil are Mato Grosso and Parana and depending on the growing season in each state, the lead can flip back and fourth. Last year, Mato Grosso claimed the top spot as the leading grain producing state due to dry weather in Parana that impacted the state's soybean and corn crops and wet weather during harvest that affected the wheat crop. At the same time, Mato Grosso experienced a good growing season. This year, the situation has reversed itself. The growing season in Mato Grosso has been too wet and the soybean crop in the state is a bit disappointing. In Parana, this has been a very good growing season and the soybean and corn crops in the state could set record yields.

According to Conab's most recent report, the state of Parana will produce 29.32 million tons of grain compared to the 28.35 million tons estimated for the state of Mato Grosso. If realized, the state of Parana will be responsible for 20% of Brazil's 2009-10 grain production.

Farmers in Parana increased their soybean acreage by switching some of their full season corn acreage into additional soybean production. In addition, the growing season has been very good and soybean yields are expected to set a record for the state. In western and southwestern Parana, very good soybean yields are being reported with many fields averaging 55 to 60 bu/ac. Reported corn yields are also very good with many farmers reporting their best corn yields ever.

Even though the state of Parana is much smaller than Mato Grosso, it has a more diverse grain-producing base. In addition to full season corn and soybean production, farmers in Parana also produce safrinha corn, edible beans, wheat, and other small grains. The state of Parana is also one of the largest poultry and swine producing states. In Mato Grosso, the grain production consists basically of a first crop of soybeans followed by a safrinha corn crop. Mato Grosso farmers produce some rice and sorghum, but only in minor amounts.

Most of the tillable land in Parana has already been put into row crop production, but much of the land in Mato Grosso still has its native vegetation and it has not been cleared for agricultural production. In fact, of the land that has been cleared in Mato Grosso for agriculture, the majority is in pasture and not row crops. Mato Grosso has a huge cattle heard, the largest in Brazil, and cattle ranching is a prime endeavor in the state. If you combine grain production and livestock production, Mato Grosso surpasses Parana in total agricultural receipts.