July 20, 2007

US soy production expected to be down 17.1 percent

The soy harvest in the US for the current crop would be 17.1 percent below the 2006/07 harvest, the USDA revealed after a revision to its June forecast of soy production in the country.

US soy production is expected at 71.44 million tonnes for the current harvest.

The revision is due to a 1.7 percent reduction in the June forecast of the planted area in the US. The reduced area meant a 4.37 percent reduction in production from previous forecasts. 

The USDA has also revised its global soy harvest for 2007/08 downward by 1.5 percent from its June forecast to 222 million tonnes.  This new value represents a reduction of 5.94 percent in relation to the global 2006/07 harvest.

The reduced soy harvest in the US and worldwide further reinforces Brazil's standing in terms of soy exports.

US soy prices are expected to be up 18.2 percent in the domestic market and 22.3 percent in the international market, compared to 2006.

Meanwhile, Brazil's soy production in 2006 reached a record 52.5 million tonnes, 2.5 percent more than 2005, according to the Brazilian Institute of Geography and Statistics (IBGE).

However, values declined 15.1 percent while harvested areas fell 3.9 percent. The erratic rainfall led to a 5.2 percent reduction in planted areas last year.