January 24, 2007

Brazil's soy crop seen unaffected by recent rainfall

Rains throughout the south and centre-west soy belt in Brazil have not yet caused any harvest or yield problems, according to market analysts Tuesday (Jan 23).

"The most worrisome likely situation I'm seeing is in Mato Grosso do Sul because rains could impact the upcoming harvest. But so far, so good," said Steve Cachia, a soy market analyst for brokerage firm Cerealpar.

"People are concerned with all the rain we are getting, but there have been no problems to report as far as yields are concerned," said Gonzalo Terracini, a soy complex consultant for risk management firm, FC Stone.

"It's something to keep our eyes on," he said.

Last week, Brazil's main crop science institute, Embrapa, said that despite steady rainfall over the last several days, Asian soybean rust has not led to downward revisions in current crop estimates.

Brazil is expected to harvest a record-breaking 54.9 million tonnes of soybeans in 2006/07, according to government estimates.

Brazil is the no. 2 soy producer behind the US.