Brazil's grain output forecast to fall 2.6 pc in 2027

Rio de Janeiro: Brazil, one of the world's leading food producers, is expected to harvest 346.6 million tonnes of grain in 2027, down 2.6 per cent, or 9.2 million tonnes, from 2026, according to a forecast released by the Brazilian Institute of Geography and Statistics (IBGE).

The area planted with grain crops is projected to reach 83.2 million hectares in 2027, a slight decrease of 78,500 hectares from 2026, the IBGE projected on Friday (local time).

The forecast marks a reversal from 2026, when grain production is estimated to reach a record 355.8 million tonnes, up 2.8 per cent from 346.1 million tonnes in 2025, reports Xinhua news agency.

Soybeans remain Brazil's leading crop, with output expected to reach 175 million tonnes in 2026.

Corn ranks second, with estimated output of 145.5 million tonnes. It is a key ingredient in animal feed and a feedstock for ethanol production.

Rice and wheat output in 2026 are estimated at 11.3 million tonnes and 5.3 million tonnes, respectively.

Favourable weather conditions across most of Brazil's major grain-producing states supported the harvest in 2026.

However, the El Nino climate phenomenon is expected to affect growing conditions in key producing regions in 2027, with changes in rainfall patterns potentially weighing on crop yields.

Higher oil prices are adding to these challenges by pushing up farm production costs and affecting the prices of energy, fertilisers, crop protection products and fuel.

Brazil is one of the world's largest agricultural producers and exporters. Soybeans and corn account for most of its grain output and are among its main agricultural exports.

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