In June, the Systematic Survey of Agricultural Production (LSPA) estimated a production of cereals, legumes and oilseeds (cotton seed, peanuts, rice, beans, castor bean, corn, soybeans, oats, rye, barley, sunflower, sorghum, wheat and triticale) amounting to 118.525 million tons, 0.92% lower than the amount expected in May (119.707 million tons), although 5.29% above the one obtained in 2005 (112.574 million tons).  There was decrease of 3.82% in the planted areas (45.753 million hectares) in relation to the previous year. The major reductions were castor beans (-31.42%), herbaceous cotton (-28.28%), barley (-26.45%), wheat (-26.41%), rice (-24.13%), peanuts 1st harvests (-19.20%), triticale (-12.46%) and sorghum (-10.42%).

In comparison with May, stood out the changes in the estimate of production of five products: oats (-8.99%), barley (-6.52%), corn 2nd harvest (-2.08%), soybeans (-0.76%) and wheat (-12.56%).

Regarding oats (-8.99%), whose main producer is Paraná, responsible for approximately 74% of the national harvest, the decrease occurred due to unfavorable climatic conditions and low prices.  There was reduction of the average income, as well as of the areas for planting.  The negative change for barley (-6.52%) was influenced by the new data from Rio Grande do Sul, the main producer, where there was reduction of the planting areas due to problems faced by the agriculturists in the classification and commercialization of the latest harvests.

The fall of corn 2nd harvest (-2.08%) occurred mainly due to droughts, especially in Paraná, which reduced the area to be reaped (-4.55%) and the yield (–6.16%), in relation to May.  Regarding soybeans (-0.76%), the diminishment of the production was in fact due to reevaluations of the final data of the harvest in the Central West.  Regarding wheat (-12.56%), the fall was a result of the decrease in Paraná (-22.86%), the main producer.

In relation to the harvest in 2005, 14 products changed positively and 11 negatively

In comparison with the harvest 2005, 14 products investigated by the LSPA had a positive change in the estimate of production: peanuts in husk 2nd harvest (7.09%), oats in grain (0.24%), potatoes 2nd harvest (7.44%), potatoes 3rd harvest (1.21%), coffee in grain (19.99%), sugar cane (6.46%), onions (4.69%), beans in grain 1st harvest (11.84%), beans in grain 2nd harvest (31.72%), orange (0.24%), cassava (6.81%), corn in grain 1st harvest (18.20%), corn in grain 2nd harvest (26.52%) and soybeans in grain (3.43%).

On the other hand, a negative change was observed regarding 11 products: herbaceous cotton in husk (-22.85%), peanuts in husk 1st harvest (-15.39%), rice in husk (-12.78%), potatoes 1st harvest  (-6.26%), cacao beans (-0.78%), barley in grain (-6.05%), beans in grain 3rd harvest (-8.54%), castor beans (-31.87%), sorghum in grain (-2.01%), wheat in grain (-22.34%) and  triticale in grain (-1.39%).

The gains with the summer harvests occurred mainly due to the recovery in comparison to the great losses which were observed in 2005.  Regarding corn 2nd harvest, stood out the increments expected in the production of the states of Paraná (44.51%), Mato Grosso (7.31%) and Mato Grosso do Sul (89.37%), as a consequence of the climatic conditions observed in the period of sowing of the cereal and the good prospects of prices for the second semester.

The decrease in wheat (-22.34%), the main winter product, was a consequence mainly of the reduction of 24.11% in the planted area. Among the factors responsible for this reduction must be mentioned the low value of the product in the inner market and the difficulty of commercialization of the latest harvests.

The decapitalization of producers, combined with non-compliance and consequent credit restriction, also caused the use of low technology in the implementation of this harvest, which may influence the productive potential of this harvest. In some regions, there was lack of seeds, as well as droughts following the planting season.  There was an expressive decrease of 22.82% in the harvest of Paraná, where the drought, besides determining damages to the product, caused area reduction in some regions.

In absolute terms, the production of cereals, legumes and oilseeds was distributed in the following way among the Major Regions: South, 49.752 million tons; Central West, 39.231 million tons; Southeast, 15.996 million tons; Northeast, 10.091 million tons and North, 3.455 million tons. The percentage distribution can be found in the graph below.