Nov 10, 2022

Brazil Increased Grain Storage Capacity 3% in 2022

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

While Brazil has been making slow progress in addressing its chronic lack of grain storage, increases in grain storage capacity continues to lag the increase in grain production. The Brazilian Geography and Statistics Institute (IBGE) recently reported that Brazil had 188.8 million tons of grain storage capacity during the first semester of 2022, which represented an increase of 3% compared to the second semester of 2021. While the increase is important, it is not keeping pace with production increases of 17.3% estimated for soybeans and 12% estimated for corn.

The report indicated that Brazil had 8,378 grain storage facilities in 2022, which was an increase of 2.2% compared to 2021. The state of Mato Grosso has the largest grain storage capacity at 46.9 million tons while the state of Rio Grande do Sul has the most grain storage facilities at 2,183.

The total amount of grain stored during the first semester of 2022 was 65.5 million tons or an increase of 10.5% compared to the second semester of 2021. The five major commodities stored during the first half of 2022 were soybeans (35.3 mt), corn (19.3 mt), rice (5.1 mt), wheat (2.3 mt), and coffee (0.8 mt). These five commodities account for 95.8% of the total.

New grain storage constriction in Brazil continues to play catch up to the ever-increasing grain production. The soybean acreage in Brazil has increased for 16 consecutive years, and as the soybean acreage increases, it automatically encourages an increase in safrinha corn acreage which is planted as a double crop after the soybeans are harvested. The safrinha corn production in 2022/23 will represent approximately 76% of Brazil's total corn production.