July 30, 2008

 

Brazil 2008-09 soy planted area to rise 2.1 percent
  
  

Brazilian agribusiness consultancy Safras & Mercado expects Brazil's area of soy to increase 2.1 percent in the 2008-09 crop season, Safras & Mercado said in a press release late Friday (July 25).

  

Brazilian farmers should plant between 21.08 million and 22.4 million hectares in the 2008-09 crop season compared to 21.2 million hectares in 2007-08, Safras & Mercado said in a press release.

  

According to analyst Flavio Franca Junior, soy farmers are planting more soy due to high average soy prices, profit for the majority of soy farmers as well as good future trends for soy demand and prices.

  

Farmers have also been encouraged to plant more soy by having increased access to official credit and an increased availability of genetically modified, or GMO soy, he said.

  

Nonetheless, Franca warned that the brakes can be applied due to an unfavourable exchange rate with the US dollar weak against the Brazilian real and a rise in the cost of production.

  

Brazilian farmers have been complaining that the high cost of inputs such as fertilizers have been eating into their profits this year.

  

Brazil is the world's No. 2 soy producer after the US.
   

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