CORN AND SOYABEAN PRODUCTION EXPECTED TO GROW IN BRAZIL IN 2019

For next year, the positive trends for the domestic grain market are strong demand and smaller areas of cultivation, sustaining the Chicago Stock Exchange, in addition to higher exchange rates and premiums. Brazilian ports record firm demand, comfortable freights and better logistics. There are some contrary factors, such as the largest areas of cultivation in Argentina, the uncertainties about the commercial war, the increase in production costs and freight impasses. The margins will be more fair, but still positive for the 13th consecutive year and the capitalized producers. Growing areas and production should grow by 3% and 1%, respectively, in the two crops. Soyabeans had 35.2 million hectares in the 2017/18 harvest and an estimated 36.1 million ha in the current crop. Production will jump from 121.4 million tons to 122.9 million tons this year. Corn had 17.3 million ha in the previous harvest, reaching 16.8 million in the 2018/19 harvest and the expected production is 94.6 million tons, compared to 81.1 million in the previous harvest. France Junior showed the advanced planting and the good technological level in the sector. The climate pattern of La Niña weak, including winter and summer without major anomalies help the producers. “The instability of the exchange rate with the trade war between the United States and China, as well as other economic obstacles such as the Fed’s interest rate and concern about the slowdown of the global economy, will influence the next direction of the quotations”. France ends by saying that the Brazilian market is very enthusiastic about the assembly of the new economic team of President Jair Bolsonaro and that 2019 will be a year of good fluidity for agribusiness.
Source: Universo Agro