USDA reports record production of corn and wheat in Brazil

Corn and wheat production in Brazil breaks records, while rice reaches its lowest harvest in 25 years due to prolonged drought and low profitability for farmers. This was the picture outlined in a report from the United States Department of Agriculture (USDA). Knowing the organization's vision is important because it guides the international market.

The forecast for the corn planted area in 2023/24 is 22,8 million hectares, an increase of 1,3% compared to the current harvest, with production estimated at 125 million metric tons (MMT). Milled rice production is forecast at 10,13 MMT, a drop of 1,7% compared to the previous season, due to the decrease in planted area. Wheat production for 2023/24 is estimated at 11 MMT, an increase of almost 4% compared to the 2022/23 harvest.

Below, see the summary presented by the North American agency for each of the cultures.

corn production

Brazilian corn production continues to exceed expectations, with yet another record demand in both the domestic and international markets. Farmers remain optimistic about continuing planting, resulting in an increase in expected planted area for next season. However, logistical burdens, lack of storage facilities and transportation challenges along with higher production costs remain a hurdle that could hamper the country's production numbers.

Rice production

Brazil is expected to harvest its lowest rice harvest in 25 years. The decrease in production is mainly credited to the reduction in planted area and the drought in Rio Grande do Sul, the main rice producing state. Additionally, lower profit margins have discouraged farmers, who are turning to more profitable crops such as soybeans and corn. Rice consumption is also expected to decrease, with Brazilians changing their eating habits towards quick foods and less time-consuming preparations.

wheat production

Wheat continues to pique the interest of farmers in Brazil, with increasing investment in technologies, including new hardy cultivars adapted to dry climates and more resistant to disease, providing record production numbers. Furthermore, the possibility of an increase in international demand for wheat, taking advantage of the space left by the serious harvest problems in Argentina and the war led by Russia in Ukraine, and the decrease in production costs are factors that have increased the optimism of Brazilian producers in in relation to the 2023/24 wheat harvest.