September 10, 2010

Brazil revises up soy forecast

Brazil's 2009/10 soy crop was estimated at a record 68.7 million tonnes, up slightly from the 68.5 million tonnes projected in early August, according to the government's crop supply agency Conab.

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 12th and last estimate of the crop, it said Brazil's total corn output would total 56.1 million tonnes, up from the 54.4 million tonnes projected a month ago and the 51 million tonnes harvested in 2008/09.

"Rains favoured the corn crop, which demands moisture during its whole development cycle," Conab said in a statement.

Brazil has two corn crops: the main summer crop that is planted from September and harvested in December; and a smaller but increasingly large winter crop that kicks off planting in January and harvests around June-July.

"The drop that had been expected in the winter crop planted area was not confirmed; on the contrary, there was a 6.3% increase in planting," Conab said. Also, the winter crop yields were better than forecast, showing an increase of 19.6% from Conab's previous estimate.

The 2010 wheat crop forecast was raised by 50,000 tonnes to 5.39 million tonnes. Harvesting has already started in some states where crop conditions have been satisfactory, Conab said.