February 18, 2008

Brazil can expect a "very good" soy harvest for 07/08

Brazil can expect a "very good" soy crop for 07/08, despite delays in soy harvesting caused by persistent rains in parts of Brazil's center-west, an Agroconsult analyst said Friday (February 18, 2008).

However, the risk of significant crop losses due to delays in the harvest in the center-west still exist, said Andre Pessoa, director of Agroconsult.

Larger planted areas, more investments in technology and good weather has been cause for optimism, despite some regional problems, he said.

Drier weather in recent days has helped farmers in some areas, especially in the north part of Mato Grosso state, to speed up harvest, which had been delayed since mid-January.

The delay in planting in September and October 2007, which lasted up to 30 days in some areas, also contributed to the later than usual harvest.

Weather-related problems in Rio Grande do Sul, Goias and Mato Grosso could remain problems.

Still, farmers in Mato Grosso are regaining lost ground and the state's crop should be big and productive.

Agroconsult puts Brazil's 2007/08 soy crop at a record 60.9 million tonnes, compared with 58.5 million tonnes in 2006/07.

Despite high prices, Brazil's farmers are likely to gain as much of it has already been sold when prices were low.

Around 70 percent of Mato Grosso's soy crop had already been sold while soy prices were around US$8 per bushel on CBOT. Prices have since risen to US$13.50 per bushel. Farmers only sold 40 to 50 percent of their soy crop the same time last year.