Salto do Jacuí (Brazil) (AFP)

Brazil is poised to harvest record quantities of soybeans, corn and other grains thanks to the increase in its cultivated areas and the explosion in demand, especially from China.

The world's largest soybean producer and the world's third-largest corn producer got off to a slow start due to drought in key grain belt states, but has had a bumper harvest thanks to optimal weather conditions since.

"The grain harvest in Brazil continues at a record pace, with a growth of 16.8 million tonnes, or + 6.5% compared to the last harvest," said the National Agricultural Supply Company on Thursday ( Conab) in its latest update.

For the 2021 harvest, Brazilian cereal growers have extended their total cultivation area by 3.9%, or 68.5 million additional hectares.

With 135.5 million tonnes, the soybean harvest is expected to reach a record level + 8.6% higher than last year, which was already a record.

Maize is also on track to break a record, with an expected harvest of 109 million tonnes, up 6.2%.

Working alongside each other, rows of combines trace immense white stripes across the golden fields, harvesting the sea of ​​soybeans under a vivid blue sky.

- Chinese appetite -

A large part of the Brazilian harvest of this legume will go to China, which consumes it abundantly to feed its pigs.

"Thanks to beautiful weather, we had excellent productivity. And prices are also very high, well above previous years," said cereal producer Adroaldo Rossato to AFP.

Food commodity prices have reached record highs in global markets after falling due to the coronavirus pandemic last year, fueled by appetite from China which has seen its economy restart at a sustained pace.

Beijing is also a voracious importer of oil, copper, iron ore and coal.

This trend leads some analysts to wonder if the world is not at the start of a new "commodity supercycle".

But it is probably too early to say, tempers Warren Patterson, head of commodity strategy at ING bank: "if we want to see the start of a new supercycle, the robust growth in demand that we are seeing in China will have to be durable for several years, "he warns.

© 2021 AFP