Brazil is heading for a bumper grain crop this year with the estimated yield crossing 145.7 million tonnes in 2008, up 9.4 per cent from the 133.1 million tonnes in 2007, a report said.

This may impact the global grain prices, which have been on the rise following a shortage in the market.

According to projections released by the Brazilian Institute of Geography and Statistics, the cultivated area in the country is expected to increase 4.1 per cent in 2008, reaching 47.2 million hectares, according to Commodity Online.

The crops which occupied the largest number of the cultivated areas in 2008 were soybean, with 21.3 million hectares, followed by corn with 14.4 million hectares and rice with 2.9 million hectares. The three grains account for 89.7 per cent of Brazil’s total grain output.

An increase in soybean crop in Brazil will bring down global prices of the commodity. Same is the case with corn.

Grain output in 2009 may drop 3.8 per cent from 2008 while the cultivated area is expected to increase by 0.9 per cent, reaching 47.6 million hectares.

A decrease in the grain output next year is expected due to the international financial crisis.