Brazil set to post record harvest: Conab

Brazil's 2019-20 grain and oilseed crops are poised to reach record production of 245.8mn metric tons (t), boosted by an increase in acreage and a recovery in the soybean crop, which will also likely break a record.

The number would mark an increase of 1.6pc from the last cycle. The total area planted is also expected to reach a record of nearly 64mn hectares (158mn acres), up 1.1pc from last year's season, the country's agricultural statistics agency (Conab) said today in its first report on the new season.

Farmers have already started planting soybean and corn in some southern and west-central areas of the country. Both commodities - including the winter corn crop, sowed after the soybean harvest - account for 90pc of all Brazil's grain and oilseed crops. Other crops included in the total are sunflower, barley and peanuts, among others.

Soybean output is estimated at a record 120.4mn t in the 2019-20 harvest, 4.7pc higher than the 2018-19 season, when unfavorable weather conditions hampered yields in some producing regions. The planted area this year is expected to reach 36.6mn ha, up by 1.9pc from last year.

Corn output is estimated to reach 98.4mn t in this season, down by 1.7pc from a 100mn t record reached in 2018-19. Farmers are expected to sow 17.5mn ha with the cereal this season, virtually flat on an annual basis.

Cotton lint production is forecast at 2.7mn t in the current harvest, 0.4pc below output in the 2018-19 crop year, with planting totaling 1.6mn ha, up by 1.2pc on the prior season.

Exports

Conab estimates that Brazil's soybean exports will reach 72mn t in the 2019-20 crop cycle, slightly up from 70mn in 2018-19. Corn shipments are expected to decrease to 34mn t from 38mn t last year.

Cotton lint exports are seen at 1.8mn t, compared with 1.5mn t in 2018-19.