Drought and Low Price Batter Brazil’s Grain Crop

    This year’s Brazilian grain crop is expected to attain 113.468 million tons, 4.94% less than last year’s harvest, which came to 119.369 million tons.

    May’s estimate, announced Thursday, June 23, by the Brazilian Institute of Geography and Statistics (IBGE), points out that the reduction is due mainly to the projected 20.88% drop in production in the South, the region responsible for the second largest share (34.05%) of national production.


    In May’s Systematic Survey of Agricultural Production, four products stood out with estimates below what they were in April.


    The IBGE’s announcement informs that “the production estimate for herbaceous cotton (-5.71%) is 3.8 million tons, as against 4 million tons in April, due to irregular climatic conditions in the chief producing regions; wheat grains (-13.39%), due to the delay in planting, as well as what were considered poor prices offered for the product; 2nd harvest corn kernels (-5.90%), due to the lack of rainfall in the major producing centers; and 3rd harvest beans (-3.31%), due to the reduction in cultivated area in the state of Minas Gerais.”


    ABr

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