USDA expects Brazilian corn production to remain stable in 2009 / 10.

(Agricultural Wealth Network) Brazil's corn crop is expected to stabilize at 51 million tons in 2009/10 as yield increases offset declines in summer corn acreage, according to the latest USDA Counsellor's Report.

Summer maize sown area decreased by 7 per cent to 8.5 million hectares from 9.25 million hectares the previous year. Falling corn yields and lucrative soybean yields have prompted farmers to replant large areas of corn farmland, especially in the south, with soybeans. Soybeans cost about 30% less to grow than corn.

Another reason for farmers to broadcast soybeans is that corn is riskier than soybeans because corn crops are more demanding on moisture.

Brazil has approved nine GM maize varieties, including many resistant to pests and pesticides. The Counsellor expects that about half of the corn crop in 2009/10 will be GM varieties. Therefore, corn yield is expected to increase by 8 to 10%.

The counselor said that the corn planting area in Parana, Brazil's number one corn producing area, is expected to be 99. 50,000 hectares, down 20 percent from the previous year. soybean planting area will increase to 4.3 million hectares from 4.07 million hectares last year.

However, the weather in the Midwest is good, and local farmers plant soybeans early, which means farmers have enough time to plant summer corn.

At the same time, the Counsellor revised down the corn export figure for 2008/09 to 7.2 million tons due to weak demand, increased global supply and stronger real exchange rates.