Attractive prices lure Brazilian farmers to corn cultivation, production expected to hit 105m tonnes

BRAZIL — Despite a smaller-than-expected first crop and delayed planting of second, Brazil corn produce is expected to reach a record 105 million tonnes in the 2020-21, according to a Global Agricultural Information Network (GAIN) report from the US Department of Agriculture (USDA).

USDA in its report noted that corn production is expected to increase thanks to elevated domestic demand and record-setting prices which make the crop more attractive to Brazillian farmers.

The Agency attributes boosted domestic corn prices to strong demand from the poultry and livestock sectors, the growing corn ethanol industry, and expanding consumption.

Corn prices are expected to remain high through the end of 2021 pushing the USDA’s 2021-22 marketing year corn production to 114 million tonnes, an 8.6% increase of the current market year.

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Brazilian corn exports are forecast to slip 5% in the 2020-21 marketing year to 37 million tonnes, while increasing to 40 million tonnes in the following marketing year.

Even with record corn production expected the USDA anticipates Brazil to import 2 million tonnes in the 2020-21 marketing year of the commodity due to feed demand and fears of dwindling stocks as exports continue at a rapid pace.

A good year for wheat and rice

Apart from corn, wheat production is also expected to soar in the 2021-22 marketing year with 7.05 million tonnes expected from farms of the South American country.

Planting of the crop is scheduled to begin in early April and the USDA attributes the possible record crop to high domestic wheat prices.

Wheat imports for the 2021-22 marketing year are expected to rise slightly to 6.7 million tonnes with shrinking stocks at the end of the current marketing year expected to stimulate imports to meet rising domestic consumption.

Conversely, the USDA anticipates Brazil’s wheat exports in the 2021-22 marketing year to rise to 1 million tonnes due to increased production.

Brazilian milled rice production is projected to reach 7.82 million tonnes in the 2021-22 marketing year based on the expectation that domestic rice prices will remain high in the coming months.

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Rice imports for the 2021-22 marketing year are forecast to be 800,000 tonnes, a slight decrease compared to the previous marketing year of 850,000 tonnes.

The USDA further expects exports of the commodity to reach 900,000 tonnes in the 2021-22 marketing year.

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