April 21, 2009

Brazil's soy production for 2008-09 is expected to reach 58 million tonnes, down three percent from the previous year's 60 million tonnes, reports the US Department of Agriculture.

Farmers had already harvested 54 percent of soy by end March 2009 where harvest began in Mato Grosso--one third of the country's soy grains are produced. Parana, which accounts 17 percent of Brazilian production, harvested 70 percent of its soy by the end of March. Harvest began recently in Rio Grande do Sul, which accounts for 14 percent of Brazilian soy production. Nearly 70 percent of the soy in that state are in the pod-fill stage.

The drought that hit the south of Brazil was the primary source of lower soy yields in that region. But because soy are planted later than corn in that region, the drought did not damage the soy as much as it did with corn.

The USDA expects that soy area will marginally increase by 2009-10. However, no large increases in area are possible in the South where area is relatively fixed, or in Mato Grosso where environmental concerns have effectively halted further expansion.

For more of the USDA report, please click here.