June 11, 2008

World soy production to rise 10 percent in 2008-09

World soy production for the 2008-09 marketing year will be about 10 percent higher than for 2007-08, due mostly to increased planting in the US, but also thanks to stronger production expected from countries like Brazil, according to a report released Tuesday (June 10, 2008) by the USDA.

The first USDA forecast for global soy production in 2008-09 is 240.67 million tonnes, an increase from the 218.8 million tonnes estimated for 2007-08.

"Most of the increase is due to higher production in the US as producers increased planted area sharply from 2007-08," the USDA said in the June edition of the World Agricultural Supply and Demand Estimates report.

US farmers planted 74.8 million acres of soy this year, according to the USDA, up from 63.6 million acres last year.

But farmers in Brazil and Argentina are also planting more.

"Despite continuing financial problems and a strong currency, producers in Brazil are projected to increase plantings by around 5 percent, more than offsetting a small reduction in yields," the USDA said.

The USDA is predicting Brazil will produce 64 million tonnes of soy for the 2008-09 marketing year, up from 61 million tonnes for 2007-08.