April 11, 2013

Paraguay's dynamic soy production may increase as harvest is set to conclude about twice the level of 2012, due to better weather and agricultural techniques.

Soy production soared 77% in 2009-10. However, output dropped 39% last season when a drought struck the country.

According to the USDA, the ongoing harvest will end up at a record of 8.35 million tonnes.

"Improvements in farm practices, use of biotech soy, timely rains, warm temperatures and a relatively unhampered harvest are helping Paraguay to achieve a record high soy yield," USDA's Denise Williams said.

The yield was pegged at 2.78 tonnes per hectare, equivalent to 41.3 bushels per acre.

Furthermore, in contrast to neighbouring Brazil, "adequate infrastructure allowed the transmission of strong world demand into the Paraguay market", Williams said.

Nonetheless, the USDA lowered its estimate for Paraguay's soy exports, reflecting growing domestic use.