March 9, 2006

Brazil's Abiove raises 2005/06 soy estimate to 57.6 million tonnes

The Brazilian Vegetable Oils Industry Association (Abiove) raised its 2005/06 soy crop estimate by 500,000 tonnes to 57.6 million tonnes on Wednesday, mostly due to good crop conditions in Rio Grande do Sul.

Abiove's previous estimate of 57.1 million tonnes was released in December.

The number represents the average crop estimate provided from Abiove's members, which include soy crushing companies like Cargill and Bunge.

Abiove's estimate goes against the current trend of lowering 2005/06 soy production numbers. The National Commodities Supply Corp (Conab) is currently revising its January estimate of 58.1 million tonnes in expectation of a smaller crop due to dry weather in regions of Parana and Bahia.

Conab will release its new estimate on March 20.