Brazil's Conab Estimates New Soy Crop

Brazil’s soybean crop will total between 56.7 million and 58.6 million metric tons in 2005-06, Conab, the supply arm of Brazil’s agriculture ministry, said on Nov 3.

In its first crop estimate of the new season, Conab forecast that Brazilian soybean plantings would fall to 21.5-22.2 million hectares, (53-55 million acres) compared with plantings of 23.3 million hectares (57.5 million acres) in 2004-05.

Production in line with the Conab projection would be record high, but below USDA’s current Brazilian crop estimate, which is 60 million metric tons.

Conab projected Brazil's main summer corn crop at 31.7-32.5 million tons, up from the 27.3 million harvested last season.

Conab pegged the new cotton crop at 908,000 to 1 million tons of lint compared with 1.3 million in 2004-05.

With harvest winding down, the 2005-06 wheat crop in southern Brazil is forecast at 4.9 million tons, down from the last year’s near-record 5.8 million ton crop.

Conab sees Brazil’s total grain production reaching 121.532 million to 124.854 million tons, up from 113.48 million in 2004-05, if normal weather conditions prevail.

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.