January 30, 2012

Brazil's 2011/12 soy crop estimate down on drought impact

Providing more early signs of the impact of drought, Brazils' 2011/12 soy crop estimate has been lowered on Thursday (Jan 26).

Parana cut its crop view to 11.67 million tonnes from the previous projection of 12.73 million tonnes due to dry weather in November and December, the state's agriculture department said. That marked the second downgrade of the crop by the department, which had cut its outlook from 14.1 million tonnes earlier in January. Drought over the grain belts of Brazil and Argentina, the world's second- and third-largest suppliers of soy, has sent Chicago soy and corn futures prices surging in past weeks as markets weigh its impact on global food supplies. The two countries account for about 50% of global soy supplies.