August 6, 2007

 

Brazil 2007/08 soy area seen rising by 3 percent 

 

High debts and competition from other crops like corn and sugarcane will see Brazilian soy farmers expanding their planted area by around 3 percent to 21.3 million hectares in the 2007/08 soy season, agribusiness consultancy Safras & Mercado said Friday (August 3).

 

The figures were released to clients last Friday.

 

According to Safras & Mercado, soy growers will increase planted area somewhere between a low 20.5 million hectares to a high of 22 million hectares, for an average of 21.3 million hectares. Brazil planted 20.7 million hectares in 2006-07, according to Safras & Mercado's own estimates.

 

Average yields should be around 2,791 kilograms per hectare, for a crop of around 59.4 million tonnes.

 

Safras' estimate is the most bearish so far in terms of soy field expansion. Competing consulting group, AgRural, estimated that Brazil should expand by 7 percent.

 

Another consulting group, Celeres, will release its estimate for the 2007/08 season on Monday, Aug 6.

 

Rui Prado, president of the Mato Grosso Soy Producers Association, told Dow Jones Newswires recently that the state's soy growers should expand by around 5 percent on the high end. Safras & Mercado estimated a 3.4 percent expansion to 5.4 million hectares. Mato Grosso is Brazil's No. 1 soy producing state.

 

On Thursday, Agriculture Minister Reinhold Stephanes said in Mexico that Brazil should increase soy area by 5 percent nationwide.

 

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