January 20, 2006

 

Soy harvest begins in Brazil

 

 

Soy growers in Mato Grosso state in Brazil began harvesting soy this week, in what is expected to become part of an eventual record-breaking 57.9 million tonnes soy crop.

 

The northern part of Mato Grosso state is harvesting an estimated 2.1 million hectares, producing about 6 million tonnes of soy, according to federal government figures. The northern region accounts for 35 percent of Mato Grosso's total production of an estimated 17 million tonnes this season. Mato Grosso is the biggest soy-producing state in Brazil.

 

But as the Agriculture Ministry celebrated Wednesday the start of the soy harvest season in the centre-west soy belt, some farmers in no. 2 producer, Parana, said dry weather could reduce the state's production by 10 percent. Parana is expected to harvest 11.7 million tonnes of soy in the 2005/06 crop.

 

"It's been more than 10 days since the south and south-western part of Parana has seen any significant rainfall," said Dirlei Monfio, an agronomist at the state's Secretary of Agriculture. "And crops are definitely starting to feel the pain."

 

Monfio released a report on Wednesday that said 5 percent of the state's soy crop was in "poor condition" compared with 3 percent in last week's report.

 

Monfio said he did not agree with agronomists from Parana's largest cooperative, Coamo Agroindustrial, who said that at least 10 percent of their crop would be ruined because of dry, hot weather since Jan 1.

 

Monfio said he would have more information about crop losses in Parana next week.

 

"I think we are going to see a reduction in this crop size out of Parana," said Decezar Vernizi, crop manager at Coamos office in Campo Mourao.

 

Coamo cooperatives span three states - from southern Mato Grosso do Sul, through Parana and into Santa Catarina.

 

The Campo Mourao region has roughly 60,000 hectares of soy and produces 3,600 kilogrammes per hectare, Vernizi said.

 

Although the weather has been hotter and drier than usual in the past week, Joel Burgio, senior meteorologist at Meteorlogix, said rains would return to Parana by this weekend as a cold front moves up from Rio Grande do Sul.

 

Soybeans can withstand dry weather during the flowering period and one week of dry weather would not impact yields, Burgio said.

 

"The situation in south-western Parana, in the heart of Coamo territory, wasn't good for a while, but it wasn't bad either," said Andre De Bastiani, a soy market analyst at AgroConsult.

 

"It's too early to tell if the dry weather they've been having will affect production," De Bastiani said.

 

"Overall, the optimistic outlook for a bumper crop continues," said Seneri Paludo, an analyst at agribusiness consulting firm, AgRural.

 

Brazil is the second largest soybean producer after the US.