September 28, 2011

  

Brazilian soy crop affected by dryness

 

 

Brazil's soy sowings are experiencing delay as dryness threaten the country's soy crop, according to the Hamburg-based analysts Oil World on Tuesday (Sep 27).

 

"Crop prospects for early 2012 are in jeopardy," Oil World said. "The threat of declining yields has increased."

 

Continuing dry weather has hindered soy sowing in Brazil, although some isolated showers could help work to speed up, forecasters said on Monday (Sep 26).

 

Brazilian farmers had planned to start soy sowings around September 15 in the major production regions of Mato Grosso, Mato Grosso do Sul and Goias, Oil World said.

 

"But it is now considered likely that virtually nothing will be planted until the end of September," it said.

 

This was creating an "unfavourable" start to Brazil's soybean season, it said.

 

Normally, early soy sowing means an early harvest between December and February. This gives farmers time to get a second crop of corn or cotton into the ground before the rainy season ends in April-May.

 

But late sowings could mean a later harvest and reduced opportunity for early second-cropping.

 

Later-than intended corn sowings caused by delayed soy plantings would raise the risk of frost damage to corn in Brazil's 2012 crop, Oil World said.

 

Oil World is currently retaining its forecast of Brazil's 2012 soy crop at 73.3 million tonnes, down from the record 75.3 harvested in early 2011.

 

"There is a risk of an even more severe decline in production in early 2012," it added.