February 3, 2022
Agri consultancies cut Brazil's soybean crop forecasts
Cogo and Datagro, two agribusiness consultancies, have cut their Brazil 2021/2022 soybean production forecasts, following other private firms that have slashed their projections due to bad weather affecting crop outlook, Reuters reported.
Cogo's projections are down from 131 million tonnes to 125 million tonnes, 14.2% below its initial expectations.
Datagro's projections have dropped from 142.05 million tonnes in its December projection to 130 million tonnes, citing weather issues from La Nina. It initially estimated 144.06 million tonnes for the 2021/2022 season.
Datagro's head of grains, Flavio Roberto de Franca Junior, said the new estimations come as rainfall levels have declined from November in the country's three southernmost states, as well in western Sao Paulo and southern Mato Grosso do Sul states.
Datagro said the impact from the drought would have been larger if the planted area did not grow to 40.5 1million hectares, a 3.7% year-on-year growth.
Other private consultancies AgRural, AgResource and StoneX have cut their output estimates earlier in the week, projecting Brazil's soybean crop falling short of the 130 million-tonne threshold.