Corn, cotton output push Brazil harvest to record

Brazil's grains and oilseeds crop rose by 6.4pc to a record 242mn metric tonnes (t) in the 2018-2019 harvest, boosted by increased corn and cotton output.

The total compared with 227.7mn t from last year's crop, the country's agricultural statistics agency Conab said in its final report on the season ended 30 June.

The corn harvest rose by 24pc to a record 100mn t in 2018-19 from the prior year. The final number was pulled higher by favorable weather conditions for winter corn, which accounts for nearly two thirds of all the country's cereal production.

Cotton lint output rose by 36pc to 2.7mn t, also a record, from the 2017-18 harvest. Conab cited attractive currency exchange rates and commodity prices as key factors for the acreage expansion, especially in the states of Bahia and Mato Grosso. Brazilian cotton producers sowed 1.61mn hectares (3.95mn acres) in 2018-19, a 38pc increase on the prior year.

Soybean output fell by 3.6pc to 115mn t, down from the prior harvest but still the second largest on record. The crop was impacted by hot, dry weather between December-January, an important period for development of the crop.

Output of wheat came in at 5.4mn t, nearly flat on the year, Conab said. Wheat imports were estimated at 7.2mn t for 2019, according to Conab. Brazil is a net importer of the cereal.

Brazil planted 63.2mn ha with grains and oilseed in the season ended in June.

The country is expected to export a record of 35mn t of corn in 2018-19, up by 47pc from the prior year, while soybean exports are expected to fall by 16pc to 70mn t, according to Conab. Cotton lint exports are forecast to rise by 64pc to 1.5mn t.

Brazil is the global top exporter of soybeans and the second in corn and cotton, behind only the US, according to the US Department of Agriculture.

Conab is due to release its first forecast on the 2019-20 crop on 10 October.