February 16, 2011

 

Brazil's soy harvest could hit new record level

 

 

Brazil's 2011 soy crop may rise to a new record of 71 million tonnes on positive weather, considerably raising its potential exports, oilseeds analysts Oil World stated Tuesday (Feb 15).

 

The new crop estimate is one million tonnes higher than Oil World's previous forecast on February 8. It is also above the 70.1 million tonnes forecast by Brazilian government crop agency Conab on February 9.

 

"The Brazilian soybean crop is in excellent shape almost everywhere and initial harvesting resulted in very high yields," Oil World said.

 

Following initial concerns about dryness, crop conditions have improved noticeably, it said. Oil world also estimates Brazilian farmers have expanded soy plantings to 24.2 million hectares from 23.5 million hectares harvested last year.

 

"Soybean export supplies (in Brazil) may reach a record 32-33 million tonnes in calendar year 2011 against 29.1 million tonnes last year which will bring much needed relief to the tight global soybean supplies," it said.

 

The larger Brazilian supplies would help create a shift in world import demand from the United States to South America in March/September 2011, it said.

 

Argentine soy has also received beneficial rain although Oil World gave no new crop forecast for the country.