February 2, 2004

Brazil Soy In Good Condition

The soybean crop in the southern Brazilian state of Rio Grande do Sul remains in good condition, despite the recent dry weather, said the state agricultural secretariat on Friday.

In a weekly report, the secretariat said this year's crop could still reach the record levels seen last year as long as abundant rains fall in the next few weeks.

But ominously for farmers, after light showers this weekend dry weather will predominate over the state next week, according to the local Somar weather service.

In December, Brazil's Agriculture Ministry forecast the state will produce 9.63 million metric tons of soybeans this year, up just 0.6% on the year before despite an 8.6% rise in planted area.

Crop progress is roughly on a par with last year. Some 11% of the crop is in the pod-filling phase, slightly ahead of the average of 8% for the time of year.

Some 24% of the crop was in the flowering phase compared with an average of 37%. The remainder of the crop was in the vegetative development phase.

Rio Grande do Sul is Brazil's No. 3 soybean state. Brazil, in turn, is the second largest soybean producer after the U.S. with a projected crop of 60 million tons, according to the U.S. Department of Agriculture.