Brazil’s next soybean crop expected to increase 9% to a record 89.1 million tons
Brazil’s 2013/14 soybean crop that starts planting in September is expected to grow by 9% under normal weather conditions to a record 89.1 million tons.
AgRural said the strengthening of the US dollar against the Brazilian Real so far this year has offset the decline in soybean prices and kept planting of the crop economically attractive to producers.
The biggest expansion in absolute terms will occur in Mato Grosso, Brazil’s largest soybean producing state located in the centre-west, with an additional 592,000 hectares. The state, which already plants 7.8 million hectares with soybeans, has large reserves of degraded pasture that is being converted into farmland through the application of lime and fertilizers.
Expansion in soybean planting will also occur in the southern grain states of Rio Grande do Sul and Parana, where producers will be switching a greater share of their first, or summer, corn crop to soybeans and planting more corn during the second, or winter, crop season. Summer crop corn area is expected to fall by 13% from this year’s 6.89 million hectares, the analyst said.
Late last week, rival analyst Safras e Mercado released its first forecast of the new soy crop, seeing output at a record 88.17 million tons, up 7% from this year’s output. AgRural and Safras e Mercado estimates are above the 85 million forecast from the US Agriculture department.