Forecast for Brazil 2009-10 soy crop takes an upturn

The Brazilian Vegetable Oils Industry Association (Abiove) lifted its soy crop estimate to 65.2 million tonnes for the upcoming 2009-10 crop.

Abiove's previous estimate on December 3 pegged the 2009-10 soy crop at 63.4 million tonnes. The 2008-09 crop produced 57.2 million tonnes. The new 2009-10 crop is just starting to be harvested in states such as Mato Grosso and Goias.

Abiove increased its estimate for soy exports from the 2009-10 crop to 27.1 million tonnes from its prior estimate of 25.8 million tonnes. The industry group maintained its soy crush estimate at 32.2 million tonnes for 2009-10. Abiove pegged the crush at 30.3 million tonnes in 2008-09.

Brazil's soy crush numbers are used as a market barometer that measures the size of the national soy crop and supply and demand.

Abiove members include the world's largest soy exporting companies, such as Bunge Ltd. and Archer Daniels Midland.

Brazil is the world's No. 2 soy producer after the US.