Rise in corn output maintains record estimate for 2017 harvest
July 11, 2017 09h00 AM | Last Updated: July 18, 2017 04h06 PM
The new estimate for the 2017 grain harvest is 240.3 million metric tons, surpassing by 30.1% the amount obtained in 2016 (184.7 million metric tons). That is an increase of 55.6 million metric tons, resulting mainly from the record figures expected for soybean (114.8 million metric tons) and corn (97.7 million metric tons). That is what shows the Systematic Survey of Agricultural Production (LSPA) of June, just released by the IBGE.
Last month, the output estimate amounted to 97.7 million metric tons, with an increase of 0.7% in relation to May estimates. That increase resulted from the results of the second harvest of this product, expected to hit 66.8 million metric tons.
Carlos Alfredo Guedes, manager of the LSPA, calls attention to the fact that harvest estimates have surpassed 240 million for the first time. “Corn and soybean were the main products accounting for this new level. In the case of corn, the second crop led production to an increase and will probably account for most of the production of this cereral in 2017. In June, the estimated figure was 68.4%”.
Record output of corn made warehouses overloaded
According to Carlos Alfredo, the output of milk has exceeded expectations. “With the result of this second crop, we didn't even have a place to store the cereal. Producers have used improvised storage and even keeping it in the open air” he explains.
Another consequence of this record production can be the increase of exports, according to the manage of LSPA. He says that after the broken harvest of 2016, the price of corn rose significantly and got more expensive in the domestic market than above. As a result, producers reduced exports. Carlos Alfredo recalls that cumulative corn exports relative to the first semester of 2017 fell 72.1% agains the figure oin the same period a year ago. These data come from the Ministry of Development Industry and Trade. But the record figure of the 2017 second crop can change this scenario, leading to the fall of domestic prices and increasing corn exports in the second semester.
The IBGE expects to see significant increase of agricultural output, considering that the 2016 harvest was vey damaged by harsh climate conditions and ended up 11.9% below that of 2015. The Institute also estimates the the area to be harvested will hit 61.0 million hectares and surpass that of 2016 (57.1 million hectares). Among the crops surveyed, the biggest increase in area. Among the crops analyzed, corn has the biggest increase in terms of harvested area against 2016: 53.5%.
Text: Luiz Bello
Image: Photos.com
