Brazil 2009-10 soy crop outlook improves

Favourable weather has improved prospects for Brazil's soy crop in the crop year 2009-10 and this is supported by a stronger currency against the US dollar.

The soy crop is likely to be higher than the previous forecast of 64.6 million tonnes in December, according to Nilva Claro, an analyst from Brazil's National Commodities Supply Corp. (Conab).

Besides the encouraging weather conditions, farmers have also applied good amounts of fertilisers, contributing to the better crop outlook, Claro said. As the Brazilian real strengthened against the dollar last year, this made imported inputs in the US currency more affordable.

Claro refused, however, to give a specific percentage increase as the new forecast is still being finalised.

Brazil, the world's second-biggest soy producer after the US, produced 57.1 million tonnes in the 2008-09 crop.

According to Steve Cachia, an analyst at Cerealpar, Brazil's soy crop is estimated to reach around 63.5 million tonnes for the 2009-10 crop season.

He added that a substantial increase in production needs both good weather and more inputs such as fertiliser.

Meanwhile, Conab said the area of land devoted to soy growing expanded to 23 million hectares in 2009-10, up 6% from the 21.7 million hectares in 2008-09.