January 10, 2007

 

Brazil's 2006/07 soy planted area seen down 7.8 percent on-year

 

 

Brazil's Census Bureau, or IBGE, on Tuesday (Jan 9) revised down its estimate for the country's 2006/07 planted area for soy to 7.8 percent less than the previous crop, or 20.3 million hectares.

 

In a November estimate, the IBGE estimated that the country's soy area would be 20.5 million hectares.

 

The bureau now puts this season's output at 54.9 million tonnes, down from the 55.2 million tonnes seen in November.

 

However, it is still 5.2 percent higher than the 52.2 million tonnes harvested in the 2005/06 season.

 

After two hard seasons, local farmers have scaled back planting on their less productive fields this season as production costs have risen.

 

Despite the diminished area this season for soy, Brazil's soy productivity will rise by 13.7 percent from the year-ago period to 2,706 kilograms per hectare, due to better rains in recent weeks, said IBGE.

 

In the November estimate, IBGE put crop yields at 2,695 kilograms per hectare.

 

Mato Grosso, the country's leading soy state, is seen harvesting a crop of 13.7 million tonnes, with productivity yields increasing 6.3 percent from the year-ago period.

 

Meanwhile, the country's no. 2 soy state of Parana will have a crop of 11.8 million tonnes, with productivity per hectare up 25.9 percent from the previous season.

 

Brazil's total 2007 grain and oilseed harvest is now seen at 123.9 million tonnes, up 6.3 percent from the previous harvest at 116.6 million tonnes, and up as well as from IBGE's previous estimate of 122.4 million tonnes.

 

Brazil is the world's no. 2 soy producer and exporter after the US.