Harvesting of the 1997 wheat crop has just been completed. The crop has been affected in the last few weeks by torrential rains and flooding in the southern states of Santa Catarina and Rio Grande do Sul, particularly in the latter state which accounts for 32 percent of domestic production, with resulting damage to crops as well as severe damage to housing and infrastructure. Wheat yields are possibly affected and the appearance of fungal disease is likely to occur because of the excess humidity. Production is tentatively estimated at about 2.6 million tons, compared to an average of 2.4 million tons in the last five years.
Planting of the 1997/98 maize crop has been delayed because of excessive rains. More rains are forecast in the next few weeks. The area planted to maize is provisionally forecast to decline from the near record in 1996 but still remain above average. However, the outcome of the crop will be principally determined by the impact of El Ni�o in the months ahead. Technical advice is being disseminated to the rural population by the Government on how to cope with the potential effects of the phenomenon.