February 23, 2011

Brazil's 2011 soy harvest likely to hit 72 million tonnes

Brazil's 2011 soy crop may get higher to a record 72 million tonnes against 68.6 million tonnes in 2010 as expanded plantings continue to receive good weather, Oil World said Tuesday (Feb 22).

It was its fourth increase of its Brazilian harvest estimate this month.

The new crop estimate is one million tonnes higher than Oil World's previous forecast on February 15 and up two million tonnes on its February 8 forecast.

It is also above the 70.1 million tonnes forecast by Brazilian government crop agency Conab on February 9. Oil World had forecast the crop at only 68.5 million tonnes on February 1.

"Soybean production in Brazil could approach 72 million tonnes this year if current estimates of the individual states materialise," Oil World said.

Brazil's soy plantings for harvesting in early 2011 have been expanded by 0.7 million hectares to a new record of 24.15 million hectares it said.

"Soybean crop prospects have further improved, primarily due to favourable rainfall and crop development in Rio Grande do Sul," it said.

The harvest in Rio Grande do Sul, Brazil's third largest soy production state, is expected to reach a record 10.39 million tonnes against a previous estimate of 9.14 million tonnes, the state's crop agency said on February 17.

But Oil World warned that although recent wet weather had been favourable, there is also concern about too much rain in some parts of Brazil.

"Drier and warmer conditions are required in those regions where soybeans are sufficiently mature to facilitate increased harvest activity," it said.