Brazil is the world’s largest producer of coffee, citrus, sugarcane, and beef cattle and the world’s second largest producer of soybeans behind the U.S. Drought conditions in the central-south region of the country and excessive rains in the central-west ‘bread basket’ states of the country are causing economic losses to the country’s agricultural sector. In the state of Mato Grosso in the last ten days some regions have seen twice the historical average rainfall, totaling 225.9 millimeters, cutting the expected soybean harvest of 26.9 million tons for the state by half a million tons. The state of Parana is expected to lose 2 million tons of its expected 16.5 million tons soybean harvest representing an economic loss of US$956 million, and some areas could lose up to 50% of their corn and soybean crops as ground temperatures exceed 100 degrees Fahrenheit. The worst drought in decades has hit the country’s coffee belt as well causing coffee prices to increase by 40%.
To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free bi-weekly enhanced eNews service