In May, the estimate for the production of cereals, legumes and oilseeds (cotton seed, peanuts, rice, beans, castor beans, corn, soybeans, oats, rye, barley, sorghum, wheat and triticale) was 119,707 million tons, 1.65% less than in April (121,970 million tons), but 6.34% more than in 2005 (112,574 million tons). There was reduction of planted area in 2006 (3.27% or 46,013 million hectares) in relation to last year. Among the products surveyed, the biggest reductions of planted area affected castor beans (-31.28%), herbaceous cotton (-28.82%), rice (-23.90%), wheat (-20.20%), barley (-19.41%) 1^st harvest, peanuts (-13.00%) and sorghum (-11.74%).

Among the main products, there was increase of the production of 1^st and 2^nd harvest beans (11.52% and 30.40%, respectively), as a consequence of the good prices obtained since 2005. Considering both harvests, there were increments of 18.11% and 29.21% in terms of corn, and also soybeans (4.36%). The gains from the summer harvest occurred due to the recovery in terms of the comparison with the major losses in the last harvest.

Concerning 2nd harvest corn, the positive prospects result from the increase expected in the production of the states of Paraná (61.34%), Mato Grosso (12.21%) and Mato Grosso do Sul (68.57%). In general, these rises were affected by the proper climactic conditions and the expectation for better prices in the second semester. In Paraná, especially, besides the aforementioned reasons, the prospects were not favorable to the harvesting of wheat. In Mato Grosso, the high levels of humidity in the soybeans harvesting period contributed positively to the planting of corn, although it caused damage to the oilseed.

With reference to wheat, the main winter product, the production estimate is 4,137,328 tons, a decrease of 11.19% in comparison with 2005.It is a clear consequence of the reduction of planted area (20.28%). The main factors accounting for this change were the low price of this product in the internal market as well as the commercialization of the latest harvests. It is also worth mentioning that, in some areas, there was lack of seeds, as well as the occurrence of a dry period during the planting season.

In absolute terms, the distribution of the production of cereals legumes and oilseeds among the Major Regions is the following: South, 50,520 million tons; Central West, 39,501 million tons; Southeast, 16052 million tons; Northeast, 10,076 million tons and North, 3,558 million tons. The percentage distribution is shown in the graph below:

Positive changes in 15 products in the fifth 2006 harvest estimate

Among the main products investigated  by the Systematic Survey of Agricultural Production (LSPA), 15 presented positive change in the estimated production in relation to the previous year: 2^nd harvest peanuts in husk (7.18%), oats in grain (10.14%), 2^nd harvest potatoes (10.15%), coffee in grain (20.87%), sugarcane (5.46%), onions (4.12%), barley in grain (0.50%), 1^st harvest beans (11.52%), 2^nd harvest beans (30.40%), oranges (2.02%), cassava (6.57%), 1^st harvest grain corn (18.11%), 2^nd harvest grain corn (29.21%), soybeans in grain (4.36%) and triticale (7.18%).

The change was negative concerning herbaceous cotton (-23.09%), 1^st harvest peanuts in husk (-8.93%), rice in husk (-13.17%), 1^st harvest potatoes (-6.24%), 3^rd harvest potatoes (-12.38%), cacao beans (-0.78%), 3^rd harvest beans in grain (-9.39%), castor beans (-31.72%), sorghum in grain (-3.30%) and wheat in grain (-11.19%).

In comparison with April, the highlights are the changes in the estimated production of 2^nd harvest peanuts in husk (21.38%), rice in husk (3.09%), coffee in grain (2.28%), 2^nd harvest corn in grain (3.87%), soybeans in grain (-3.74%) and wheat in grain (-8.29%).

Among the main factors accounting for the expansion of 2^nd harvest peanuts (21.38%), can be mentioned the good prices of the first harvest of this product and the period of June parties (a popular celebration in Brazil) when there is usually increase of internal consumption. This crop has also benefited from a program aimed at the regulation and increase of consumption of peanuts (Pro-Amendoim), which is an incentive to a better qualification of this type of grain.

Considering rice (3.09%), the highlight was Rio Grande do Sul, responsible for approximately 57.7% of the national production. In comparison with April, production decreased in all the regions, except in the South.

With reference to the production of coffee (2.28%), the increase was influenced by the new results from Minas Gerais, the major national producer. This led to the reevaluation of the average yield, resulting in a figure 3.20% higher than the result of the previous month, due to the fact that this crop is harvested every two years.

The increase of the production of 2^nd harvest corn (3.78%) was a consequence of the consistent evaluations, especially in Mato Grosso, which, in relation to April, reevaluated the area to be planted expanding it by 17.35%, and estimated production above 19%, under the same climactic conditions.

The decrease observed for soybeans (-3.74%) resulted from the reevaluation of the data about the main producing centers. Mato Grosso, the major national producer, was the area which presented the biggest decrease in production (-9.13%), because of the excess of rain in the harvesting period.

With reference to wheat (-8.29%), the decrease reflects the changes in the main producing states: Paraná (-7.32%) and Rio Grande do Sul (-12.80%).