February 8, 2006

Brazil's census puts 2005/06 soy crop at 58.5 million tonnes

The Brazilian Census Bureau (IBGE), said this season's 2005/06 soy crop would come in at an estimated 58.5 million tonnes, according to its monthly crop estimates released Tuesday.

The number further solidifies both private and public estimates pointing to a bumper soy crop this season. On Monday, the National Commodities Supply Corp of the Agriculture Ministry estimated a 58.1 million tonne 2005/06 soy crop.

Private estimates at farm-market research and consulting firms Safras and Mercado, and AgRural range between 58.2 million and 57.3 million tonnes, respectively.

Brazilian soy growers are making do with less in the 2005/06 crop. According to IBGE, soy planted area was reduced by about 1 million hectares to 21.9 million hectares for the 2005/06 crop, compared with 22.9 million hectares in the 2004/05 crop, when 51 million tonnes of soy was harvested.

A weaker US dollar during the 2004/05 harvest squeezed soy growers' profit margins, causing them to spend less money on herbicides, fungicides, pesticides and fertilisers on the 2005/06 crop.

The majority of Brazilian soybean is harvested from mid-March to May.

This was IBGE's first crop estimate for 2006.