February 9, 2011

Brazil's soy harvest may hit new record in 2011

Brazil's soy crop could climb to a fresh record of 70 million tonnes in 2011 due to a better outlook from increased plantings and better weather, according to oilseeds analysts Oil World on Tuesday (Feb 8).

"Soybean prospects have brightened, raising the possibility of a record crop of 69-70 million tonnes this year," Oil World said.

This compares with the previous record crop in 2010 of 68.6 million tonnes. Oil World had only on February 1 raised its forecast of Brazil's 2011 crop by 1 million tonnes to 68.5 million tonnes.

Brazil is the world's second-largest soy exporter after the US.

Brazil's crushing industry association Abiove raised its 2011 crop forecast to 68.8 million tonnes on February 3, Oil World noted.

"Several private estimates have been raised to or above 69 million tonnes," Oil World said.

Rainfall levels had clearly improved in Brazil's Rio Grande do Sul soy production region while soy plantings in the Mato Grosso region were larger than expected, Oil World said.

Oil World on February 1 also raised its forecast of Argentina's 2011 soy crop by one million tonnes to 48 million tonnes after beneficial rain fell, but this would still be down on the 54.4 million tonnes harvested by Argentina in 2010.