January 8, 2010

Brazil raises 2009-10 soy estimates

Brazil's National Commodities Supply Corp. (Conab) on Thursday (Jan 7) pegged the country's 2009-10 soy crops at 65.2 million tonnes.

Conab's fourth crop estimate for the record-breaking 2009-10 soy crop is 14% higher than the 2008-09 crop of 57.2 million tonnes.

The agency boosted its output forecast from an earlier estimate of 64.6 million tonnes in December.

Conab, which is part of Brazil's Ministry of Agriculture, said the expansion in soy production came as producers increased the soy growing area, with the cost of production per hectare lower than its main rival, corn. Additionally, the weather did not hinder the production.

Land area devoted to soy expanded to 23 million hectares in 2009-10, up 6.1% compared with 21.7 million hectares in 2008-09.

Conab's estimate is slightly above the range of most private estimates of around 63-64 million tonnes.

Brazilian producers have planted their 2009-10 soy, and the first beans have been harvested in some parts of northern Mato Grosso.