Brazil Soy Development Favorable

Brazil's 2005-06 soybean crop is developing favorably, with 61 percent of the crop now flowering, the private analyst Celeres said on Jan. 17, according to Reuters News Service.

On average over the past five years, 67 percent of the crop has been flowering by this week, Celeres said. Only 7 percent of the crop had entered into flowering by this time last year, when a drought was scorching the southern soy states.

Celeres, which forecast the crop at a record 58.1 million metric tons on Jan. 9, up from 52.4 million tons last year, said, "favorable climatic conditions permitted a better development of the soy crop."

Pod filling has begun, with 8 percent of the crop forming beans, compared with a five-year average of 14 percent, according to Celeres. About 1 percent of the crop is maturing for harvest, compared with 2 percent on average over the past five years.

Harvesting of very early maturing soybeans has begun in some areas of the center-west growing region, but this is still only a fraction of the total crop.

"Asian rust outbreaks that have cropped up have been brought under control without major losses to the crop," Celeres said about the health of the center-west crop.

Celeres said the main concern has been a lack of sufficient rains in the south. But most plants in the region are just now entering into flowering, when regular rainfall is critical.

Emater, the Brazilian Agriculture Ministry’s extension service, reported Tuesday that soybean development is satisfactory over the bulk of crop lands in the southern state of Rio Grande do Sul despite concerns about dry weather.

However, crop germination was hampered a sharp lack of moisture in some areas. The main areas where the crop has been hurt account for approximately 9 percent of the state’s soybean area.

On average, 89 percent of Rio Grande do Sul’s soybean crop is in the vegetative stage of development and 11 percent in the flowering stage.

Editors note: Richard Brock, The Corn and Soybean Digest's Marketing Editor, is president of Brock Associates, a farm market advisory firm, and publisher of The Brock Report.

To see more market perspectives, visit Brock's Web site at www.brockreport.com.