May 13, 2004

USDA Lowers Brazilian Soybean Output Forecast To 53.5 Million MT

The U.S. Department of Agriculture lowered its forecasts for 2003-04 soybean production in Brazil, matching most market expectations.
 
The USDA, in its monthly supply and demand report released Wednesday, dropped expectations for Brazilian soybean production to just 53.5 million metric tons, down from the 56 million it had been forecasting a month ago.
 
Analysts said they were expecting the drop in Brazilian production due to overall poor weather conditions there, a drought in southern producing regions and the country's struggle with the Asian rust fungus.
 
The USDA has been consistently lowering its expectations for Brazilian soybean production over the past months. In February, the USDA predicted Brazil would produce 61 million tons. That dropped to 59.5 million tons in March and then down to 56 million tons in April.
 
Argentina is also now expected to produce less. The USDA lowered its 2003-05 soybean output forecast to 34 million tons, a 1-million ton drop from the April projection.
 

Source: USDA