December 11, 2006

Brazil's 2006/07 soy crop put at 56.1 million tonnes

Brazilian agribusiness consultancy Agroconsult said the progress of the country's soy crop continues positive and should produce 56.1 million tonnes from the 2006/07 crop.

The number is roughly 2 million tonnes greater than the crop estimate made this week by the

National Commodities Supply Corp (Conab).

Agroconsult said that good weather throughout Mato Grosso and Parana, the top two soy-producing states, is pushing current estimates upwards on Brazilian soy farms.

"The development of the crop is going well in almost all regions. Good volumes of rain throughout practically all producer regions gave this crop a good head start," Agroconsult said in a note.

Yields for the leading producer, Mato Grosso, should be between 43 and 47 60-kilogramme bags per hectare. In Parana, yields were put between 45 and 48 bags per hectare.

Asian soybean rust discoveries early in the season were less than incidences in the 2005/06 crop at this time. More of the leave destroying fungus is expected in the near-term, however, said Douglas Nakazone, a consultant at the company.

"Recent rains provide the conditions for more (Asian soybean) fungus, but no matter what happens, the problem will be less pronounced than last year," Nakazone said.

Mato Grosso and Goias states, both in the centre-west, prohibited the planting of soy in the winter months this year. The two states plant soy for seeds in the winter. Only some fields were allowed to be planted. The reductions allowed for less fungus to be present in the winter months, and therefore less fungus in the air come spring and summer. Brazil starts planting in October, in the early weeks of spring time in the southern hemisphere.

Brazil is the no. 2 soy producer behind the US.