March 26, 2004

Brazil's Rio Grande do Sul Soy Production Down 37%

Brazil's southern state of Rio Grande do Sul, the country's No. 3 soy producer, is seen producing 6.05 million metric tons of soybeans this season, down 37% on last season's total of 9.58 million tons, due to drought, the state's agriculture research department, Emater, said Thursday.
 
The estimate is 29% lower than original estimates of 8.53 million tons after many regions suffered from lack of rain in January and February.
 
"In the last 10 years we have had similar situations, with the 1999-2000 crop the most affected by lack of rain," said Emater technical director Ricardo Schwarc.
 
The state's planted soy area is seen at 3.89 million hectares, up 8.5% from last year, while productivity is seen at 1,554 kilograms per hectare, almost 42% lower than last year's record level of 2,667 kg/hectares.
 
The latest estimate by Emater is below the 7 million-ton forecast released by the state's cooperative association Fecoagro earlier this month. The official estimate for the state, released last December before the effects of the drought, by the National Commodities Supply Corp., or Conab, is 9.7 million tons.