Brazil begins planting predicted record corn, soybean acres

are expected to expand by 4% to 56 million, with production pegged at 5.46 billion bushels, down 2%. The expansion for corn is driven mainly by rising domestic corn consumption supported by stronger demand from the livestock feed and corn ethanol industries. But the predicted production decline reflects an expected reduction in yields, following last season’s record-high production and productivity. The increase in soybean acreage is being influenced by strong domestic demand, especially for biodiesel, and international demand. But there are some headwinds that could slow crop expansion in Brazil. “Brazilian farmers are planting a soybean crop that also could be financially challenging with a 4% increase in production costs,” Colussi, a native a Brazil, said. “Average gross margins are estimated to fall from $165 per acre to $105 per acre. This is especially for farmers that own the land (80%).” “We know there are expectations that if an agreement (between the U.S. and China) is ...