April 6, 2006

Brazilian groups reduce 2005/06 soy crop estimates

The Brazilian Vegetable Oils Industry Association (Abiove) lowered its 2005/06 soy crop estimate by 200,000 tonnes on Wednesday (Apr 5), putting the harvest at 57.4 million tonnes.

In their soy export registrations report on Mar 27, Abiove said it still was expecting a 57.6-million-tonne harvest.

The reduction follows a similar trend as the government's National Commodities Supply Corp (Conab) lowered its 2005/06 crop estimate to 55.7 million tonnes on Wednesday, after putting the incoming harvest at 57.1 million tonnes on Mar 20.

Abiove represents Brazil's largest soy crushers. The estimate is an average of the estimates provided by member companies such as Cargill Agricola, Bunge Alimentos and Archer Daniels Midland.

Meanwhile, analysts at AgroConsult--which conducted private crop tours of Brazilian soy farms recently--says that Brazil's soy crop could fall below 55 million tonnes.

AgroConsult has been projecting a 55.3-million-tonne crop for some time, but on Wednesday, the firm said the number could be closer to 55 million tonnes or below, moving AgroConsult's estimate closer to official estimates.