March 8, 2006

Brazil's census cuts 2005/06 soy crop by 2.5 percent

The Brazilian Census Bureau (IBGE) stated Tuesday in their monthly 2005/06 soybean estimate that Brazilian soy growers would harvest roughly 57 million tonnes of soy, down 2.5 percent from January's estimate of 58.5 million tonnes.

IBGE said that dry weather and poorly distributed rainfall in Bahia, Minas Gerais, Mato Grosso do Sul and Parana states contributed to overall crop reductions in February.

Bahia's crop estimate was reduced to 1.9 million tonnes, compared with 2.3 million tonnes estimated in January. Minas Gerais saw monthly estimates fall to 2.6 million tonnes, compared with 2.8 million estimated in January, and Mato Grosso do Sul production fell to 4.6 million tonnes from the 5.2 million tonnes IBGE estimated in January.

Production also fell in Parana due to dry weather conditions in the southwest mainly. Parana is expected to harvest 9.9 million tonnes of soybeans in this 2005/06 season, compared to IBGE's January estimate of 10 million tonnes. Parana is the second largest soy producer in Brazil.

The largest producer, Mato Grosso, saw a slight increase in soy production estimates in February, rising to 17.5 million tonnes from the 17.4 million IBGE estimated in January.

IBGE's estimate for the third largest producer, Rio Grande do Sul, remained at January levels of 8.2 million tonnes.

Brazil is currently harvesting soy beans in Mato Grosso. Other states will begin harvesting later this month. Brazil is the world's second largest soy producer, trailing behind the US Brazil harvested 51.1 million tonnes of soybeans in the 2004/05 crop.