Brazilian harvest to exceed previous estimates
By Agrenco News/Folha de Sao Paulo
Harvest estimates from Brazil have been raised from 139.3 million tonnes of grain to 140.7 million, based on higher expected yields in corn and soybeans. In all, it amounts to a nine million tonne increase compared to last year's totals.
April 10, 2008
Sao Paulo, Brazil -The Ministry of Agriculture has raised the estimate of the 2007/08 grain harvest from 139.3 million tonnes to 140.7 million tonnes to account for a higher expected yield of corn and soybeans. The record forecast amounts to a 9 million-tonne growth over the previous harvest.
The study indicates that Brazil should harvest 59.9 million tonnes of soybeans, 56.2 million tonnes of corn, and 11.9 million tonnes of rice. For beans, which in 2007 were one of the villains of inflation, a 3.4 million tonne harvest is expected—a growth of 2.9%.
The president of Conab (National Food Supply Company), Wagner Rossi, says that “this year, food prices should not be well-behaved, but they won’t be too rowdy either”.
Despite the overseas economic crisis and higher volatility in commodities prices, the Ministry of Agriculture believes that international grain prices should remain stable at their high levels. In 2007, the growth in commodities led to a 7.89% expansion in the sector.
In Rio de Janeiro, the Agricultural Coordinator of the IBGE (Brazilian Institute of Geography and Statistics), Flávio Bolliger, emphasized that the country had the conditions to export corn, “including draining capacities, which used to pose a challenge”.
Farmers expect to conclude an accord today that would see a rollover of US$56 billion in debt. At a meeting yesterday with Ministers Reinhold Stephanes (Agriculture) and Guido Mantega (Finance), rural leaders managed to convince the government to lower debt interest rates from 8.75% to 6.75%.