Oct 01, 2010
Farmers in Bahia to Plant More Cotton and Soybeans but Less Corn
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Brazilian farmers in the cerrado region of western Bahia intend to take advantage of high cotton and soybean prices by increasing their 2010/11 cotton and soybean acreages and reducing their corn acreage.
For cotton, it is anticipated that the acreage in the state will increase 23% compared to 2009/10 to 301,000 hectares. Bahia is the second leading cotton producing state in Brazil (after Mato Grosso) and was responsible for 31% of last year's Brazilian cotton acreage.
The 2010/11 soybean acreage in Bahia is expected to increase 1% to 1.06 million hectares. Soybean yields in 2010/11 are expected to be slightly lower than the record yields of last year at 3,000 kilograms per hectare or 43.5 bushels per acre. Total soybean production in the state is expected to be slightly lower than in 2009/10.
The 2009/10 growing season was a record year for soybean production in Bahia surpassing three million tons of production for the first time. The soybean acreage in 2009/10 was 1.05 million hectares, 6.8% more than 2008/09. Total soybean production in 2009/10 was 3.21 million tons or 28% more than the previous year. Soybean yields in 2009/10 were also a record at 3,060 kilograms per hectare or 44.3 bushels per acre.
The corn acreage in Bahia is expected to decline 10% in 2010/11. Total corn production for the state is expected to be 1.28 million tons with an average yield of 8,400 kilograms per hectare or 130 bushels per acre. While corn prices are improving, the potential margins for cotton and soybeans are better than they are for corn. Additionally, domestic corn prices in Brazil were very low until just a month ago due to an oversupply in the domestic market and many Brazilian farmers are concerned that they might have an equally hard time selling their 2010/11 corn crop.