Brazil’s Ministry of Agriculture, Livestock and Food Supply anticipates the country will produce 193 million tons of grain including a record harvest of 90 million tons of soybeans which would push Brazil to overtake the U.S. as the world’s top soybean producer and one of the world’s top food producers along with the U.S., China, and India. Gross domestic product (GDP) for Brazil’s agricultural sector could grow 4% to US$416 million in 2014. If it does, the result would be Brazil’s agricultural GDP gaining 34% in ten years. Brazil exported $99 billion worth of soybeans, corn, and meat in 2013 – more than 40% of the total value of all Brazilian products sold to foreign countries. Despite growing global demand for grain, bumper crops from both North and South America could put downward pressure on global prices, however coming into 2014 dry conditions in Brazil could prove to support prices. Because of unpredictable weather, grain output estimates are still difficult to set. Conab has revised its grain harvest estimates downward and may again in March. But because of an increase in acreage planted many investors still hold a positive view on Brazilian soybeans.
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