January 14, 2008

US lowers world soy production forecast, drop seen in Brazil
 

World soy production is now forecast to drop to 220.34 million tonnes for the 2007-08 marketing year, down from a December prediction of 221.59 million tonnes, according to the USDA's monthly supply and demand report released Friday (January 11, 2008).

Paraguay's soy production forecast was raised, but not nearly as much as the prediction for Brazil was lowered, the USDA said.

"Brazil's soy crop is reduced 1.5 million tonnes to 60.5 million tonnes," the USDA said in the supply and demand report. The forecasters said production would be lower than expected because of recent Brazilian government surveys showing planting to be down.

The USDA forecast for Brazilian soy production last month was 62 million tonnes.

US soy farmers will also be producing less that USDA forecasters predicted in December. Lower-than-expected yields, the USDA said in the report, was why the US production forecast was lowered to 2.585 billion bushels, down from 2.594 billion.

The USDA lowered its average yield per harvested acre estimate to 41.2 bushels per acre, down from 41.3 bushels per acre.