August 6, 2010

Brazil cuts 2009-10 soy crop estimates

Brazil's 2009-10 soy crop was estimated at a record 68.47 million tonnes, the government's crop supply agency Conab said Thursday (Aug 5), trimming the view of 68.71 million tonnes it gave in early July.

Brazil finished harvesting the most recent soy crop in May. In 2008/09, it harvested 57.17 million tonnes of soy.

In the agency's 11th estimate of the crop, it said Brazil's total corn output would rise to 54.38 million tonnes from the 53.46 million tonnes seen in July. The Latin American farming giant harvested 51 million tonnes in 2008-09 (July-June).

Brazil has two corn crops: the main summer crop that starts planting in September and begins harvest in December; and a smaller but growing winter crop that kicks off planting in January and harvests around June-July.

The winter corn crop has suffered from drought in Mato Grosso, one of the main growing states for the second crop. Nonetheless, winter corn output is seen at 20.18 million tonnes, up from 19.41 million tonnes seen in July and 17.35 million tonnes a year ago, according to Conab's latest forecast.

Meanwhile, the new 2010 wheat crop was seen at 5.34 million tonnes, up from the 5.2 million tonnes projected in July and 5.03 million tonnes harvested in 2009. Planting of the new crop ended in July in all producing states and has begun already in Parana, the main producer state, Conab said.

The weather has been favourable for the development of the wheat crop, the agency said. Brazil is often the world's largest importer of the grain due to the challenges of producing it in the tropical and subtropical latitudes of its growing areas.

Brazil's total grain output was raised to a record 147.1 million tonnes in the latest forecast, up from 146.7 million tonnes seen in July and 135.1 million tonnes harvested in 2008-09.