November 1, 2006

Brazil's 2006/07 soy crop estimated at 54.7 million tonnes

Grain brokerage firm Cerealpar estimated Brazil's 2006/07 soy crop to come in at 54.7 million tonnes, the company said Tuesday (Oct 31).

The number is one of the highest private estimates thus far for Brazil's new soy crop. Steve Cachia, market analyst for Cerealpar and author of the report, said planted area would be reduced by 7 percent to 20.6 million hectares.

National yields were put at 2,650 kilogrammes per hectare compared with 2,403 kg per hectare in the 2005/06 season. Yields were expected to rise in the southern states and decrease in the south-east and centre-west states.

Cachia said he was taking into consideration historic productivity levels and present weather conditions.

Soy growers are investing less in this season's crop due to a liquidity crisis on most Brazilian soy farms. Good weather has given the crop a healthy start these past four weeks, Cachia said.

Brazil is the world's second biggest soy producer behind the US.