Brazil Farmers to Have a Banner Year as Ag Production Rises

It’s going to be a good year for Brazilian farmers, according to a state agency that’s forecasting production gains for pretty much every commodity grown in the country.

Brazil’s crop-supply agency Conab said in a report this morning that it now expects total grain production for the 2016-2017 marketing year to increase 15% to 215.3 million tons.

The increase is due to improved weather in much of Brazil, which helped increase average yields, Conab said in Tuesday’s report. The total area planted with grains is likely to increase by 1.3% to 59.1 million hectares (146 million acres).

Soybean output will rise 8.7% to 103.8 million tons, while the area planted with the oilseeds grew 1.6%, according to the agency. Rice and cotton production are both expected to grow about 10% from last year despite declining area devoted to the commodities.

At the end of the winter harvest last year, wheat output was up almost 22% year over year to 6.7 million tons, barley production was up almost 43%, and canola output increased, Conab said.


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