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Brazil Grain Production

Posted by admin at 04 Mar, 2019

Brazil is the second largest soybean producer in the world, behind only the USA. In the 2016/2017 harvest, the crop occupied an area of 33.89 million hectares, which totaled a production of 113.92 million tons. The average yield of Brazilian soybean was 3,362 kg per hectare.

Brazilian grain production from the 2018-2019 harvest can grow between 8% and 9% with demand from China.

The expansion of the area will occur in the face of firm demand from China for Brazilian soybeans, in the midst of a tariff war with the United States, after two record-breaking oilseed crops, in which producers have performed well. Brazil's grain production in the crop that began to be planted in September (2018/19) could increase between 8% and 10%, with growth of sown area and an increase in the harvest of soybean and corn under normal climate conditions, said the chief executive of the National Association of Distributors of Agricultural and Veterinary Supplies (Andav). The expansion of the area will occur in the face of firm demand from China for Brazilian soybeans, in the midst of a tariff war with the United States, after two record-breaking oilseed crops, in which producers have performed well. The growth would occur despite doubts related to the exchange, in the election year, that have delayed the business of agricultural inputs, said Andav's executive Henrique Mazotini.

However, the Andav executive sees a delay in the input business (seeds, pesticides and fertilizers) this year, amid problems generated by the truck drivers' strike and also the establishment of a freight table, but the swings in the exchange also have a heavy farmers' decision. Many agricultural inputs have their prices pegged to the dollar, which is currently in the range of R $ 3.70, about 50 cents higher than the one registered in the same period last year, in the face of electoral concerns.

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Although recent news indicates that the meeting between Presidents Donald Trump and Xi Jinping will take place only in April, negotiations continue to evolve among senior government officials from both countries. Signaling a breakthrough in the issue of intellectual property, a key factor in the discussions, is quite positive. Despite the market's renewed hopes, only concrete facts will bring breath to prices. The promise of Chinese purchases of US soybeans, totaling 10 million tonnes, needs to evolve into official announcements. So far, only 1 million tonnes has been confirmed.

2 COMMENTS

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Ademar G.
Mar 18, 2019

Brazil's soybean production in 2019 is expected to reach 119.50 million tonnes, stable compared to the revised record volume of 2018.

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Edinaldo P.
Mar 08, 2019

Brazilian sales were boosted this year by the growing trade dispute between the United States and China, culminating in Beijing taxing American soybeans. The move prompted Chinese buyers to turn their backs on Brazilian products.

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Vitoria C.
Mar 04, 2019

Smaller shipments by 2019, however, should contribute to the increase in domestic inventories. The forecast of reserves is of 3,765 million tons at the end of the next year, against 1.465 million in 2018.

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