May 5, 2009

Brazil's southern states of Parana and Rio Grande do Sul should complete their soy harvest this week, Eduardo Godoi, an analyst at consulting firm Agrural said Monday (May 4).

 

Parana, the No. 2 soy producing state, harvested 98 percent of its beans as of April 30, while Rio Grande do Sul harvested 89 percent of its crop, Godoi said.

 

The soy harvest in Rio Grande do Sul - traditionally the last to start - has been helped by the dry weather in March and April, Godoi told Dow Jones Newswires.

 

Brazil's total soy harvest was 92 percent complete as of April 30 compared to 87 percent the week before and 89 percent in the same period of 2008, according to Agrural.

 

Mato Grosso - the No. 1 soy producing state - Mato Grosso do Sul and Sao Paulo states have already finished their soy harvests.

 

Most of the soy crop progressed well last week except in the northeast, which was lashed by rain, keeping the farmers out of the fields.

 

Godoi said Agrural's earlier 2008-09 soy crop estimate is likely to be revised downward this week from 58.3 million tonnes.

 

Brazil's expected production should be lowered due to a smaller crop in Rio Grande do Sul state, he said.

 

Although the hot, dry weather in March and April helped the harvest, it also dried out the beans leading to less volume. As a result, Rio Grande do Sul state is unlikely to reach Agrural's previous forecast of 8.6 million tonnes this year, he said.

 

"This should lead to a small drop in Brazil's volume of beans," said Godoi without giving further details.

 

Agrural is finalizing its research and will publish the new soy crop estimate Friday.

 

Brazil's National Commodities Supply Corp., or Conab, last month put the crop at 58.1 million tonnes.

 

Brazil is the world's No. 2 soy producer, behind the US.