Paraguay's 2009-10 soy planted area may decline to 2.6 million hectares, down from the estimated 3 million hectares in 2008-09 due to an expected return to more normal planting levels for second-crop soy or zafriña, reports the US Department of Agriculture.

The country's soy production is seen at 3.8 million tonnes on a harvested area of 3 million hectares-down from an estimated 6.9 million tonnes produced on an 2.65 million hectares in 2007-08. In 2008-09, approximately 2.6 million hectares were planted with the primary soy crop, followed by an additional 400,000 hectares of zafriña. Primary crop yields near Naranjal (Alto Parana state) reached 1.8 tonnes per hectare on some better managed farms. However, crop conditions toward the south have been more affected by drought conditions and yields are expected to be significantly lower, with some contacts estimating averages at 1.4 tonnes per hectare overall.

For more of the USDA report, please click here.