BRAZIL (10 February)
Floods and mudslides triggered by continuous rains in January affected northeast, central-west and southeast Brazil, in particular the states of Sao Paulo and Mato Grosso, resulting in loss of life and damage to infrastructure. Harvesting of the 2003 wheat crop has been recently completed and the output is officially estimated at a record level of 5.6 million tonnes, about 90 percent above the previous year’s crop. This is largely due to a 21 percent increase in planted area and to the positive effect on yields of favourable weather conditions in the main producing states of Rio Grande do Sul and Parana. Harvesting of the 2004 first season (summer) maize crop is underway in centre-south states. The crop is reported in general good conditions and official forecast points to an output of 33.8 million tonnes, 3 percent lower than in the same season of 2003. This decline is mainly due to diversion of land to soybeans following more attractive prices and trade opportunities. Harvesting of the 2004 paddy crop in Centre and South areas is about to start. A record paddy production of 11.7 million tonnes is forecast, due to expanded planted area in the main growing states of Rio Grande do Sul and Mato Grosso in response to high domestic prices.