August 7, 2009
Brazil soy seen down 4.8 percent at 57.1 million tonnes on-year
National Commodities Supply Corp., or Conab, Thursday (Aug 6) estimated Brazil's 2008-09 soy crop at 57.1 million tonnes.
Conab's 11th crop estimate is 4.8 percent below the 2007-08 harvest of 60 million tonnes.
The estimate, though, is unchanged from the month-ago forecast for the crop, the agency said.
Conab, which is part of Brazil's Ministry of Agriculture, said that the area of land devoted to soy was 21.7 million hectares in 2008-09, up 2 percent from 2007-08.
The crop suffered from prolonged dry-weather in the south of Brazil with Parana state, Brazil's No.2 soy producing seeing a decline in production.
Brazil's 2008-09 soy harvest has ended and farmers are currently finalizing decisions about how much land to plant with soy for the new 2009-10 crop.
Although Conab hasn't yet published its 2009-10 estimates, private estimates peg the soy area for 2009-10 at between 3 to 6 percent higher than the 2008-09 crop.
This is largely because as corn prices remain unattractive, farmers are opting to plant more soy instead.
Brazil is the world's second-biggest soy producer after the US.
