January 6, 2010

Brazil bumper soy outlook to increase on rain

Soy farmers in Brazil may harvest about 5% more than previously forecast in the current season as rain boosts yields.

Brazilian soy growers are forecast to harvest a record 64.6 million tonnes of the oilseed this year, up from 57.2 million tonnes in 2009, Conab said December 8. Conab will release a new estimate for the crop on January 7.

Nilva Claro, an analyst at the Agriculture Ministry's Conab crop- forecasting agency, said yields will also rise because farmers boosted fertilizer use after the Brazilian real's appreciation last year made imports of the chemicals cheaper in local-currency terms.

Earlier in December, soy harvest was expected to increase, despite a reduction of planted area, and the first crop should see growth of 10.6% in volume, totalling 1.49 million tonnes. Conab said the variation is due to a recovery of productivity, which was affected by drought in the last cycle, especially in the state of Parana.