Brazil set for historic grain harvest

21 July 20233 min reading

Brazil, one of the world's agricultural powerhouses, is poised to witness a groundbreaking grain harvest during the 2022/2023 season. The latest report from Brazil's national agricultural agency, Conab, reveals that the country's grain production is projected to reach a staggering 317.6 million tons. This represents a remarkable growth of 16.5% or 44.9 million tons above the previous harvest in 2021/2022, setting a new record as the largest ever produced in Brazil.

The Conab report, released on July 13, indicates that this figure is even 0.6% higher than the June forecast, primarily due to the outstanding performance of the corn second crop observed in the field in the last month. Additionally, the expansion of the area sown with wheat, combined with favorable weather conditions, has contributed to this remarkable projection.

"The adjustment reinforces the record Brazilian harvest," emphasizes Edegar Pretto, President of Conab. "Brazilian agriculture has been demonstrating its strength and potential to reach increasingly higher numbers, with constant investments that allow for increases in productivity."

The report highlights the key crops contributing to this record-breaking harvest. Soybean production is estimated to reach an unprecedented 154.6 million tons, a significant increase of 23.1% or 29 million tons compared to the previous season. Corn is projected to reach 127.8 million tons, marking a growth of 12.9% or 14.6 million tons above the crop produced in 2021/2022.

Despite observing a slower advance in the harvested area of corn's second crop, this has been expected due to the delayed planting and harvesting of soybeans in several regions and the decrease in temperatures during grain maturation. Nevertheless, the outlook for cereal production remains extremely positive.

Conab's report also sheds light on the expected expansion in the agricultural area. The estimate points to 78.2 million hectares, representing a growth of 4.9% or 3.7 million hectares compared to the previous season. Notably, the most significant increments are observed in soybeans, with an increase of 2.6 million hectares (6.2%), followed by corn with 576 thousand hectares (2.7%), and wheat with 343.4 thousand hectares (11.1%).

The surge in Brazilian grain production is well-timed as it aligns with the surging international demand. Consequently, corn exports for 2023 are projected to reach a record 48 million tons, driven by the projection of increased external demand. Additionally, there is a forecast for a 27.6% increase in the internal stock at the end of this crop year, reaching 10.3 million tons. As for soy, the report indicates that exports are still estimated to rise to 95.64 million tons, signifying an impressive percentage increase of 21.5% compared to the previous harvest.

Brazil's achievement of a historic grain harvest in the 2022/2023 season is not only a testament to the nation's agricultural prowess but also has significant implications for the global grain market. The substantial increase in production, combined with rising export figures, is expected to bolster Brazil's position as a major player in the world's grain trade and contribute significantly to meeting global food demand. With a favorable agricultural landscape and sustained investments in productivity, Brazil's agriculture sector continues to demonstrate its capacity for growth and resilience in the face of changing market dynamics.

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