December 22, 2003

 

 

Brazil 2003-04 Soy Crop Forecast 14% Increase

 

Brazilian 2003-04 soybean crop production is forecasted to total 58.66 million metric tons, up 14% from the amount produced last year, the Brazilian Census Bureau (IBGE) said.

 

The institute's second forecast for the current crop is nearly in line with the agriculture ministry estimate of 58.8 million tons, issued last week, and close to the U.S. Department of Agriculture's forecast of 60 million tons.

 

The new estimate was raised substantially from the 54.30 million tons forecast in November.

 

The growth in production would be based on a 11% increase in planted area to 20.50 million hectares, said IBGE.

 

Area is seen expanding in all parts of Brazil.

 

Main corn crop production is seen dropping to 33.74 million tons this season (September-August), down 2.9% from 34.74 million tons last year. Planted area was seen falling by 0.9% to 9.27 million hectares.

 

The drop in planted area is due to low returns on investment in this crop compared with soybeans, said the release.

 

Brazil's grain, oilseed and cereal crop is expected to reach 130 million tons next year, some 26% higher than the return in 2002.

 

Seed cotton production was pegged to jump to 2.90 million tons in 2003-04 from 2.19 million tons last year.

 

IBGE said the expansion in cotton production was due to high profitability at current prices.