June 6, 2007

Brazil's 2006/2007 soy crop may reach 58 million tonnes

Brazil's 2006/07 (Oct/Sept) soybean crop is seen at record 58.0 million tonnes versus the 57.55 million tonnes projected in May, the Brazilian government said Tuesday (June 5).

The government's National Crop Supply Agency (Conab), in its ninth 2006/2007 crop forecast, says total corn output at 50.7 million tonnes versus the 51.1 million tonnes estimated in May.

Soybean production is seen to be up by 8.6 percent than last year's 53.4 million tonnes, while corn crop is estimated 19.2 percent higher than the 42.5 million tonnes harvested in 2005/06.

Brazil's wheat crop, which will be harvested in coming months, was expected to jump by 71.8 percent to 3.84 million tonnes from 2.23 million tonnes last year, Conab said in its first forecast of the new crop.

Last year's wheat crop was ravaged by drought and frost.

Conab's president Jacinto Ferreira said the rise in wheat production reflects higher planting and increased yields.

He added that a record soybean crop was achieved despite a 7.1 percent fall in planting to 20.7 million hectares. Brazil's soy harvest, which ended in May, benefited from excellent weather.

Brazil's overall 2006/07 grains crop is estimated at a record 130.7 million tonnes, up 8.1 percent from last year.