April 6, 2006

Brazil's Conab cuts 2005/06 soy estimates to 55.7 million tonnes

Brazil's National Commodities Supply Corp (Conab) lowered its 2005/06 crop estimate for the second time in four weeks, cutting its estimate to 55.7 million tonnes on Wednesday (Apr 5).

Conab estimated a 57.1 million tonne harvest on Mar 20, after estimating 58.2 million tonnes in January.

Conab's agronomists did an extra estimate in early March because farmers doubted the January figure.

Dry weather in pockets of Parana, Bahia and Mato Grosso do Sul, coupled with Asian soybean rust in Mato Grosso and elsewhere led to the drops in the last two reports.

Brazil is currently harvesting its 2005/06 soy crop. Roughly 54 percent of the crop has been harvested, with Rio Grande do Sul in the south and Bahia state in the north currently in their early harvesting period.

Brazil is the world's second largest producer of soybeans after the US.