Brazil-Grain harvest forecasts.

BRAZIL.

GRAIN PROJECTIONS.

The grain crop for 2009 in Brazil, should be 144.55 million tons, according to the latest Brazilian government’s, Brazilian Supplies Company, in a report on Friday.The soy crop should be 62.5 million tons, from the 21.5 million hectares that have been planted.

According to Adrian Seltzer, from Granar SA grain broker’s, "as in Argentina production costs have soared, many inputs such as fertilizers were acquired when prices were very high. Since then there has been a dramatic slide in grain prices which has completely modified the production equation". Seltzer also warns that" its possible that Brazil may plant more soy, since as in Argentina its cheaper than sowing corn, but its also highly probable that prices won’t be enough to fertilize as they should or apply sufficient fungicides as they should, to a greater area may not mean a greater crop at harvest time".

Meanwhile Agricultural Minister Stephanes, has said that if credit for farmers is short, the government will provide it to ensure all crops are planted.