December 11, 2007

Brazil lowers soy output estimates as corn rises

Soy output in Brazil, the world's second-biggest grower, will fall next year as rising corn prices prompted farmers to switch crops, the government said.

Corn output may rise more than expected to a record, authorities added. 

The agriculture ministry also lowered soy output by 1.3 million tonnes to 59.4 million tonnes estimated last month to 58.1 million tonnes.

The ministry also raised its corn forecast to 52.3 million tons from 51.8 million.

Farmers are seen to favor corn over soy after corn prices more than doubled in the past two years.

Soy planting has also been delayed because of dry weather in Brazil, said Silvio Porto, head of logistics at the ministry's Conab forecasting agency.

Planting of corn for the next crop will rise 1.6 percent to 14.3 million hectares (35 million acres). Soy planting would also climb 1.3 percent to 21 million hectares, Conab said.

Brazil is expected to export a lower volume of corn next year as US corn output rises, Porto said.

Exports are expected to drop to 8 million tonnes from a record 10.8 million tonnes this year, he added.

Conab also cut its forecast for cotton output next year to 1.58 million tonnes from a previous estimate of 1.61 million tonnes. Output totaled 1.52 million tonnes this year.