Brazil's soy crop could face drop for the first time in 12 years
Brazil could be facing a three-million-tonne drop in its soy crop to be harvested in early 2009 due to poor weather and low fertiliser use, oilseeds analysts Oil World said on Tuesday ( October 22, 2009).
The soy crop may decline by one to three million tonnes in early 2009, thus stopping the almost uninterrupted increase in 1996 to 2008, during which Brazil's soy crop tripled to its present levels.
Oil World last week forecast Brazil's 2009 soybean crop at 60.0 million tonnes but warned the harvest could be lower due to dryness, delayed plantings and lower yields because of reduced use of expensive fertilizers.
Unfavourable weather had delayed sowings in several key production regions including Mato Grosso, where plantings have been half the normal pace, it said. Early signs also point to lower acreage being planted as farmers suffer from a credit crunch caused by banks jittery about extending loans.
Oil World estimates Brazilian farmers will cut fertiliser use for their next crop by 20 to 30 percent compared to last year.