USDA expects Brazil's corn production to remain stable in 2009/10
USDA expects Brazil's corn production to remain stable in 2009/10
(Agricultural Wealth Network) According to the latest attache report released by the USDA, Brazil's corn production in 2009/10 is expected to remain stable at 51 million tons, because the increase in yields will offset the impact of the decline in summer corn planting area.
The summer corn planting area decreased by 7%, from 9.25 million hectares last year to 8.5 million hectares. Lower corn planting profits and strong soybean planting returns prompted farmers to switch large areas of corn farmland to soybeans, especially in the southern region. Soybean planting costs are about 30% lower than corn planting costs.
Another reason farmers switched to soybeans is that corn planting risk is greater than that of soybeans, because corn crops have more demanding water requirements.
Brazil has currently approved the planting and production of nine genetically modified corn varieties, including many varieties that can resist pests, diseases and insecticides. The attache estimates that about half of the corn in 2009/10 will be genetically modified varieties. Therefore, corn yields are expected to increase by 8 to 10%.
The attache said that in Parana, Brazil's number one corn-producing state, the corn planting area is expected to be 995,000 hectares, a decrease of 20% from the previous year. The soybean planting area will increase from 4.07 million hectares last year to 4.3 million hectares.
However, the weather in the central and western regions is good, and local farmers planted soybeans early, which means farmers have enough time to plant summer corn.
At the same time, the attache lowered the 2008/09 corn export figure to 7.2 million tons, due to weak demand, increased global supply, and a stronger real exchange rate.
The summer corn planting area decreased by 7%, from 9.25 million hectares last year to 8.5 million hectares. Lower corn planting profits and strong soybean planting returns prompted farmers to switch large areas of corn farmland to soybeans, especially in the southern region. Soybean planting costs are about 30% lower than corn planting costs.
Another reason farmers switched to soybeans is that corn planting risk is greater than that of soybeans, because corn crops have more demanding water requirements.
Brazil has currently approved the planting and production of nine genetically modified corn varieties, including many varieties that can resist pests, diseases and insecticides. The attache estimates that about half of the corn in 2009/10 will be genetically modified varieties. Therefore, corn yields are expected to increase by 8 to 10%.
The attache said that in Parana, Brazil's number one corn-producing state, the corn planting area is expected to be 995,000 hectares, a decrease of 20% from the previous year. The soybean planting area will increase from 4.07 million hectares last year to 4.3 million hectares.
However, the weather in the central and western regions is good, and local farmers planted soybeans early, which means farmers have enough time to plant summer corn.
At the same time, the attache lowered the 2008/09 corn export figure to 7.2 million tons, due to weak demand, increased global supply, and a stronger real exchange rate.