Brazil looks set to turn out a record soya crop in the 2010/11 season thanks to higher yields and despite the loss of some produce to floods in the center western soya belt, forecaster Agroconsult said on Tuesday. The soya crop, now being harvested, should produce around 72.7 million tonnes, the local consultancy said, raising its previous estimate of 72 million tonnes in February. It also estimated corn output would reach 34.8 million tonnes.
Brazil is the world's No 2 soya exporter after the United States. Excellent productivity in southernmost state Rio Grande do Sul and in Parana would more than compensate for the flooding in Mato Grosso do Sul. Those floods contributed to an expected drop in output there of about half a million tonnes from last year.
"Climate problems will not detract from this very good harvest, with optimal profitability and productivity," said Agroconsult director Andre Pessoa. The latest government estimate in early March for the soya crop is lower than Agroconsult's at 70.3 million tonnes. But even by the official number, that would still be a record harvest.
A record harvest could not come at a better time for growers with soya prices up around 40 percent since the middle of last year. Chicago May soya futures ended trade at $13.6150 per bushel on Tuesday. Despite the start of the soya harvests in South America and large output in the United States, Chicago soya futures were unlikely to fall below $10 per bushel, Pessoa said. Higher prices would provide farmers with extra cash to increase investments in the following harvest.
Comments
Comments are closed for this article.