Brazil: Grain and Feed Annual
The weak Brazilian currency and high inflation, fueled by an uncertain political atmosphere, will have a large impact on all producers in Brazil. Farmers are getting higher prices to export corn, which is increasing the price of domestic corn. Because the exchange rate is making corn exports more lucrative, 2016/2017 wheat area is forecast to decrease slightly to 2.2 million hectares (mHA) as a result of some producers switching to more second crop “safrinha” corn in the south of Brazil. 2016/2017 corn production is forecast at 86 million metric tons (mmt), which – if realized – would be a record. Rice producers have been hit by higher production costs including electricity, transport, and taxes, which is impacting their profit margins.
