BRAZIL EXPECTING SMALLER CORN, WHEAT CROPS
Smaller corn and wheat crops are forecast for Brazil in the 2023-24 marketing year, but rice production is expected to increase, according to FAS. Due to high production costs and lower expected earnings, FAS predicted a 4% decrease in the output of corn, to 130 million tonnes. Corn exports are expected to remain high, although they are seen declining by 2 million tonnes from the record outgo of 56 million tonnes in 2022-23. Consumption is expected to surge to a record 77.5 million tonnes in the current marketing year.
“In addition, the El Niño weather phenomenon is anticipated to continue having an impact on crops in the southern region of Brazilo, particularly affecting wheat farms, which will likely result in lower yields,” the FAS said. About 90% of Brazil’s wheat is grown in that region. Wheat production for 2023-24 is projected at 10.2 million tonnes, a 7% decrease from the previous year. With rice prices rising while production costs have eased, more farmers are planting rice for the upcoming harvest, the FAS said. Rice harvested area is forecast at 1.5 million hectares, a 2% increase over the previous season. The FAS projects 2023-24 rice production at 7.01 million tonnes of milled rice equivalent (MRE), an equivalent of 10.3 million tonnes of paddy rice.
(Link: WorldGrain)
SOUTH KOREA URGING MORE NON-RICE PLANTINGS
Rice production in South Korea is forecast to decline in marketing year 2023-24 by nearly 3% to 3.6 million tonnes. “Due to continuously decreasing per capita rice consumption, as well as declining population, the Korean government has introduced incentives for farmers to switch from rice to other crops, including soybean and wheat,” the FAS said.
Wheat production is projected to benefit from this policy and reach a 40-year high of 46,000 tonnes this year. Wheat imports are expected to be unchanged from the previous year at 4.5 million tonnes, while consumption is seen also holding steady at 4.1 million tonnes. Notably, the country’s market share of Eastern European and Russian feed wheat in 2022-23 dropped to 11% from 85% in the previous year, while it increased its intake from Australia from 15% to 69%.
(Link: WorldGrain)
