April 9, 2008

Brazil 07-08 soy acreage up 2.3 percent
 

Brazil soy growers increased planted area just 2.3 percent in 2007-08 to 21.1 million hectares, the National Commodities Supply Corp., or Conab, said on Tuesday.

The center-south region saw a general reduction in soy plantings in October 2007 due to sugarcane expansion for ethanol. Mato Grosso, the leading soy producing state, increased planted area by 9.5 percent to 5.6 million hectares.

Parana decreased planted area by 1.2 percent to 3.9 million hectares and Rio Grande do Sul decreased area by 1.5 percent to 3.8 million hectares. The two states are the No. 2 and No. 3 soy producers, respectively.

The numbers show that early estimates in August and September 2007 regarding Brazilian soy planting intentions were off the mark. Consulting firms estimated as much as a 5 percent increase to as high as 9 percent before planting actually began, thanks to soy bean prices pushing above US$10 per bushel for the first time in over a year.

High fertilizer costs, coupled with options to plant corn and sugarcane led to the lower than expected numbers, according to Conab.

Brazil is the No. 2 soy producer behind the US.