June 22, 2011

South American farmers to grow more soy

Brazilian and Argentine farmers have a high possibility of expanding their soy sowings for the 2012 harvest due to an increase in global soy demand, according to Hamburg-based oilseeds analysts Oil World on Tuesday (Jun 21).

Brazil's soy sowings for harvesting in early 2012 are likely to be increased by about one million hectares on the year to 25.2 million hectares, continuing recent expansion which resulted in a record Brazilian soy crop in 2011, it said.

Argentine soy plantings are likely to expand by 0.55 million hectares on the year to 19.2 million hectares for the 2012 crop, it estimated.

North America has only limited potential to expand soy sowing area, Oil World said. The US is the world's largest soy producer, Brazil is second whereas Argentina is third.

"In contrast, there is considerable potential for further expansion of plantings in South America, although environmental concern and application of sustainability criteria will gain importance and may limit the further acreage expansion," it said.

Global 2011/12 soy consumption is likely to exceed production by about four million tonnes despite larger harvests looming in South America.