BRAZIL’S FARMERS SEE MORE PROFIT IN RAISING SOYBEANS

BRAZIL’S FARMERS SEE MORE PROFIT IN RAISING SOYBEANS

Chamber Articles Category: Agribusiness Post Date: 09/06/17 Source: Successful Farming By: Darlene Santiago
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This year’s record corn production, low prices, and already high inventories will force smaller corn acres in Brazil’s future.

In a study of crop prospects by the National Supply Company (Conab) released Wednesday, the Brazilian government predicts a reduction of area planted between 2% and 5% in the first corn crop of 2017-2018 and even recommends an even more significant area reduction, going forward.

“The Brazilian producer must be attentive, since it must have profitability in its productive process. Interestingly, strategically, the farmer opts for an even more significant decline in planted area, since the 2017-18 crop corn chain needs to significantly reduce final stocks,” Conab said in the study.

According to Conab, the corn stock could reach 25.3 million tons. “From the point of view of profitability, such a scenario would be even more worrying and would not cool the pressure on domestic prices,” Conab stated. Conab sees an even further significant reduction in corn production in the 2017/2018 season, with a harvest below 90.0 million tons. If realized, this would reduce stocks. Read Full Article