CONAB (the national food supply company) has announced that the Brazilian grain harvest yield is forecast to reach 273.8 million tons, an increase of 6.5% over the previous cycle and an increase of 1.5 million tons compared to last month’s forecast.
The total planting area should grow 3.9% over the previous harvest, reaching around 68.5 million hectares. The increase is mainly due to the excellent performance of soybeans and corn. Approximately 20 million hectares will come from the second and third plantings (autumn and winter), after the first soybean and corn crops.
The CONAB survey is based on the harvest calendar, which starts in July and ends in June of the following year. In contrast, the Brazilian Institute of Geography and Statistics (IBGE) study covers the 12 months of the calendar year.
Soy
The forecast for soybeans, the primary Brazilian agribusiness product, is 135.5 million tons, up 8.6% compared to the last cycle, setting a new record.
Estimated sales to the foreign market for soybeans is 85.6 million tons (an increase of 3%). If the forecast is confirmed, it will set a new record sustained by the strong international demand and high sales for the current harvest.
