November 7, 2005

Brazil might see record soybean harvest in 2006

Brazil's government said the country might see a record soybean harvest in 2006, assuming there would be no severe drought.

Soybean production was forecast at 56.7 million to 58.6 million tonnes in 2006, according to the Agriculture Ministry. The ministry also said grain output might rise even though farmers planned to reduce planted area.

Meanwhile, Mauro Ozaki, a soybean analyst at Sao Paulo University, said actual soybean production might be lower than the forecast because government estimates were based on normal weather conditions, and assumed no plagues would attack the crop.

Although the government first estimated the 2004-05 soybean crop at 60.8 million tonnes, actual production was only 51.1 million tonnes, due to Brazil's worst drought in 40 years.

Ozaki added that farmers also did not have sufficient capital to invest in their crops.

The government said farmers might reduce soybean planted area by as much as 8 percent to 21.5 million hectares next year.