Acres Scarce in Brazil

August 27, 2008 07:00 PM
 

Linda Smith
, Top Producer Executive Editor
 
It has been expected that Brazilian soybean acreage would increase something around 2.5%, reports Eder Silveira, market analyst with Weisul Agricola, with five locations in Brazil. "But that figure was based on research concluded when Chicago futures were hitting $15.50/bu. Now, it is more likely to be a 2% increase, but it definitely doesn't mean higher production.
 
"For corn, earlier expectations were for around 4% more area (including both first crop and double-cropped),” says Silveira. "But as local prices are dropping and fertilizer prices are getting more expensive—and we now see crude furutres up 4%—I would not be surprised to hear area is dropping in some regions, as major farms have not yet concluded input purchases.”
Crop intentions research indicates cotton will decrease around 7%, and prices are worst now, he adds.
 
Silviera points to short supplies of private credit for medium and big growers, and high price risk discouraging smaller growers who could take advantage of government's credit. "These nonprofessionalized producers have no access to hedging tools. It's known that only 7% of the next crop was priced by Aug. 15, compared with 30% historically.”
 
For more information about Weisul Agricola: www.weisul.com.br.
 

 
You can e-mail Linda Smith at lsmith@farmjournal.com.
 

Back to news


Comments

 
Spell Check

No comments have been posted to this News Article

Corn College TV Education Series

2014_Team_Shot_with_Logo

Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!

Markets

Market Data provided by QTInfo.com
Brought to you by Beyer
Close