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Large fall expected in Brazil late season maize area

Brazil’s maize area for the second planting season is to fall heavily, the Brazilian agricultural confederacy, the CNA, expects. The second 2008/09 maize season will see falls of 20-25% compared with 2007/08 in some regions, such as Mato Grosso, it predicts. Expected falls in world economic growth and high [maize] stock levels indicate that commodity prices will be close to production costs, a CNA report says. Other factors impacting farmers are: a reduction in credit facilities; and a large share of 2008 growth going to agricultural input sellers, such as for pesticides and fertiliser, the confederacy adds. The late season planting takes place in the first half of 2009. The Ministry of Agriculture’s supplies agency, the Conab, predicted a 1.7% fall in the maize area to 14.5 million ha for the early season ( Agrow No 554, p 19).

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