December 9, 2009

Brazil third 2009-10 soy estimate raised to 64.5 million tonnes

National Commodities Supply Corp., or Conab, on Tuesday pegged Brazil's 2009-10 record-breaking soy crop at 64.5 million tonnes.

Conab's third crop estimate for the 2009-10 soy crop is 13 percent above the 2008-09 crop of 57.1 million tonnes.

Conab's latest estimate compared to its prior estimate in November of between 62.5 million tonnes and 63.6 million tonnes.

Conab, which is part of Brazil's Ministry of Agriculture, said one of the main reasons for the expansion in soy production is that producers increased the area with soy as the cost of production per hectare is lower than its main rival, corn.

Conab said the area of land devoted to soy expanded to 23 million hectares in 2009-10, up 6 percent compared with 21.7 million hectares in 2008-09.

Conab said in its previous estimate that the land planted with soy would be in range of between 22.4 million hectares and 22.7 million hectares in 2009-10.

Brazilian producers are currently coming to the end of planting their 2009-10 soy. Conab's latest estimate compared to the Brazilian Vegetable Oils Industry Association's estimate last week of 63.4 million tonnes.

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