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Agricultural production

Despite economic losses in 2020 due to Covid-19, crops are to hit record

Section: Economic Statistics | Alerrandre Barros

May 12, 2020 09h00 AM | Last Updated: May 13, 2020 04h59 PM

Soybean crops are to grow 121 million tonnes this year - Photo: Mônica Marli/IBGE News Agency

Unlike the other economic indicators that accumulate losses due to the Covid-19 pandemic, the national grain crop should break a new record and reach 247 million tonnes in 2020, according to the April estimate of the Systematic Survey of Agricultural Production (LSPA) , released today (12) by the IBGE. This corresponds to an increase of 0.8% in relation to the forecast of March and 2.3% in comparison with the 2019 crops, a difference of 5.5 million tonnes.

According to the IBGE agricultural analyst, Mr. Carlos Antônio Barradas, this increase in the annual comparison is mainly due to the growth of the estimate of 6.7% for soybeans (121 million more tonnes) and 3.5% for rice (10.6 million more tonnes).

"The weather favored soybeans a lot, except in Rio Grande do Sul. In addition, as soybean prices are good, producers have expanded the planting area," said the researcher. "On the other hand, Rio Grande do Sul had a good harvest of rice, which raised production estimates for this year".

Mr. Barradas also highlights a decrease of 3.4% in the corn crops (97.1 million less tonnes). “Especially in second corn crop (-5.4%). Last year, the weather helped a lot, there was a bigger planting window. This year the planting window was more restricted ”, said the researcher, adding that soybean, rice and corn represent 92.6% of the production estimate and 87.4% of the area to be harvested.

In comparison with March, the 0.8% change in the crop results from the growth in estimates of wheat 1.4 million (more tonnes) and soybeans (322 thousand more tonnes), mainly. Barley (2.6 thousand more tonnes) and oats (64.8 thousand more tonnes), which together with corn make up winter crops, also rose in the monthly comparison.

"The increase in the dollar exchange rate favored the price of wheat and, with that, producers should increase the planting area", said Mr. Barradas. “The same goes for soybeans. As the grain was harvested, producer came across a slightly better yield, which resulted in an increase of 0.3% in the crop estimate ”.

Mato Grosso forecasts 35 million tonnes of soybean harvested in 2020

In 2020, Mato Grosso should continue as the largest national producer of soybeans. The state must account for 28.7% of the volume of the grain to be produced in the country, an estimated volume of 34.7 million tonnes.

Paraná, the second largest soybean producer, with the closing of the first crop, revised its average yield, registering a decrease of 0.3%, which had an impact in the reduction of 61.2 thousand tonnes of soybeans, in comparison with the production accounted for in  March. Even so, production is expected to reach 20.7 million tonnes this year, a new record for the state.



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