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Brazil Corn Crop Expected to Top Records

Conab predicts 56.3 million metric tons in 2006-07.

The last record crop of corn in Brazil was 52.3 million tons in 2002-03. The National Commodities Supply Corp., or Conab, is predicting 56.3 million tons in 2006-07.

The total crop number counts both the fall and winter crops - the Brazilian climate allows for two growing seasons.

With ethanol demand pushing corn prices higher and pulling more of the U.S. corn harvest, Brazil's farmers are stepping up corn production to take advantage of the prices and increase exports to make up for U.S. corn that is being redirected to ethanol plants. Government estimates put Brazil's corn exports at over 7.5 million tons this year.

Corn output gained on Brazil's top crop, soybeans, for the first time since 2003-04. Corn is Brazil's number two crop.

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