BRASILIA, BRAZIL — Brazil’s grain production for the 2021-22 marketing year is expected to increase based on domestic demand and record-setting prices, according to a Global Agricultural Information Network (GAIN) report from the US Department of Agriculture (USDA).
Despite a smaller-than-expected first crop and delayed planting of second, the USDA expects Brazil to produce a record corn crop in the 2020-21 marketing year with 105 million tonnes. Farmers are expected to increase corn acreage due to record-setting corn prices. The USDA 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.
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 potential 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.
The country also is forecast to produce a record what production in the 2021-22 marketing year with 7.05 million tonnes. 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 as shrinking stocks at the end of the current marketing year and will likely stimulate imports to meet rising domestic consumption. The USDA anticipates Brazil wheat exports in the 2021-22 marketing year 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. The Brazilian economy continues to deal with COVID-19 effects, which is anticipated to keep the Brazilian real weak compared to the US dollar, the USDA said.
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 expects exports of the commodity to reach 900,000 tonnes in the 2021-22 marketing year.