December 7, 2006

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

The National Commodities Supply Corp, or Conab, said Wednesday (Dec 6) that Brazil's 2006/07 soy crop should be a record 54.7 million tonnes, or roughly 1.3 million tonnes more than the 2005/06 crop.

Conab said stronger yields should lead to greater overall production. Conab president Jacinto Ferreira said in a press note that despite a reduction in planted area, good weather conditions early in the season throughout much of the top soy regions bodes well for the coming crop. The summer months of January and February will be crucial for Brazilian soybeans if the 2006/07 crop is to be as big as Conab and private firms are currently suggesting.

The official number is lower than private estimates made on Tuesday by agribusiness consulting group, AgRural, which put the crop as big as 58 million tonnes. Local traders at two large soy exporters said Tuesday that they expected Conab's official estimate to come in close to 55 million tonnes.

Brazil is the world's no. 2 soy producer and exporter behind the US.