January 11, 2012

Brazil forecast 2011-12 soy output to be 4.7% lower

Brazil is estimated to produce 71.75 million tonnes of the crop during its 2011-12 crop year, government agriculture agency Conab said Tuesday (Jan 10).

Soy production is expected to fall 4.7% from 2010-11, though the latest estimate reflects a 0.7% increase from Conab's previous forecast, published a month ago.

Brazil's 2011-12 summer corn crop, on the other hand, is seen rising 5.6% from the previous year to 37.92 million tonnes, Conab said.

Conab's latest corn forecast is 2.8% lower than its December outlook, however.

"In December, weather conditions weren't favorable, especially for corn and soy, mainly in states in the southern region," Conab said. Analysts say dry weather caused by the La Nina phenomenon will dent grains production in southern Brazil, though the rest of the country has seen normal rainfall in recent weeks.