Analysis: Brazil brings farming muscle to corn and cotton

Reese Ewing – Reuters, 06/22/2011

After transforming global agriculture by quintupling their soybean production since 1980, Brazilian farmers are now on the brink of crop breakthroughs in cotton and corn, long dominated by growers in America.

Helped by high futures prices and a sustained local agricultural boom, cotton and corn acreage is spreading fast despite being twice as capital intensive as soybean crops.

The number of ship berths dedicated to these two crops at Brazil’s congested ports is growing, statistics show. And while soy will continue to reign on Brazil’s vast savanna, analysts say that even a modest shift toward corn and cotton could make a difference in global markets due to Brazil’s sheer size.

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