Brazil 2008-09 soy production lowered to 57 million tonnes

USDA's Foreign Agricultural Service (FAS) has lowered its estimate of Brazil's soy production for 2008-09 to 57 million tonnes.

It also lowered exports and crush forecasts to 24 million and 32.2 million, respectively.

FAS said last year's steep increase in the price of inputs and resultant tight credit was particularly problematic for Mato Grosso, where transportation costs significantly increase the costs and decrease the price paid to the farmer.

Producers are generally too large, or too indebted, to access federal loans, and multinational companies were not willing to greatly increase their financial exposure as input costs increased more than the value of the land.

Due to lack of adequate financing, a number of producers switched some land from cotton to soy.

Fertiliser use was down again this year, contributing to slightly lower yields, as some producers continue to draw on the residual in the soil left over from cotton production.

FAS noted that soy in Mato Grosso and Bahia generally looks good, with average quality and yield.

The drought that hit the southern Brazil was the primary source of lower soy yields in that region, however, because soy are planted later than corn in that region, the drought did not damage the soy as much as it did on corn.