Rainfall brightens Brazil's 2010 soy outlook

 

 

Brazil may produce more soy next year than previously forecast after rainfall in recent months helped crops, according to the agriculture ministry.

 

Farmers will produce between 62.5 million tonnes and 63.6 million tonnes of soy next year, up from an October estimate of 62.3 million to 63.3 million tonnes, said Conab, the ministry's crop forecast agency.

 

Production will rise from 57.1 million tonnes this year.

 

Most industry participants also peg the soy crop in the range of 63 million to 64 million tonnes.

 

Brazilian producers are currently planting their 2009-10 soy crops.

 

Sergio Porto, a director at Conab, said they expect good weather for the development of soy, corn, cotton and rice crops this season, and that the yields of those crops may be boosted.

 

Mills will crush more soy next year after the Brazilian government last month increased the amount of biofuel that must be added to diesel. Conab raised its crushing outlook to 32.3 million tonnes, up from 32 million projected in October.

 

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