June 12, 2007

Higher South American soybean output seen for 2007/2008 crop season

The US Agriculture Department (USDA) has raised its projections for South American soybean production in 2007/08, stating that expanded acreage in Brazil and Argentina could produce record crops for both countries.

Brazil's soybean crop in 2007/08 will be 61 million tonnes, up 2 million tonnes from the new 2006/07 estimate, while Argentina's crop will be 47 million tonnes, up 500,000 tonnes from the 2006/07 crop, according to USDA's monthly crop report issued Monday (June 11).

Thanks to good weather and higher yields, analysts are projecting higher soybean production in Brazil -- the second largest soy producer and exporter in the world.

Argentina, which ranks third in soybean exports and first in soyoil and soymeal exports, is also expected to have a record oilseed crop this year.

Brazil's soybean exports are expected to be 25 million tonnes in 2006/07 and 29.69 tonnes in 2007/08. Argentina's exports are expected to hit 7.5 million tonnes this year and 8.6 million tonnes in 2007/08, USDA said.

The increases notwithstanding, USDA foresees lower soybean production globally in 2007/08, a world crop of 225 million tonnes, 10.09 million tonnes lower than the estimate for 2006/07, largely due to reduced acreage in the United States.

In 2007/08, overall global oilseed output was projected at 399 million tonnes, which would be the first year-to-year reduction since 1995/96.