Brazil: Grain and Feed Annual

Next season, Post forecasts corn area to expand by one million hectares (ha), to a total of 22.5 million ha, and production to top 118 million metric tons (MMT). The wheat planted area will grow to 3.4 million ha, with production reaching nearly 9 MMT. The expansion for both commodities is forecast on rising global prices and demand, spiked by the armed conflict in the Black Sea region. Although Brazilian growers have room to expand planting, the big question is whether they will have enough fertilizer to do so. A reduction in inputs would also lead to lower yields, though the impact will be uneven across the country and will depend at least to an extent on climate. Post forecasts a slight decrease in rice area and production, owing to competition with other crops and lower profitability of rice vis-a-vis other crops. Unlike with the corn and wheat trade, Post does not anticipate a big uptick in external demand for Brazilian rice next year.