Market News & Headlines >> Ag Attache Lowers Brazil Soy Forecast
The U.S. agricultural attaché in Brasilia has lowered his forecast for Brazil’s 2015/16 soybean crop by 2 million metric tons, citing hot, dry conditions in the top growing state of Mato Grosso and other central and northeast states.
The ag attaché, in a report released on Wednesday, but dated Dec. 24, 2015, pegged Brazil’s soybean production at 98 million tons, versus USDA’s official December estimate of 100 million tons. The attaché lowered his estimate of 2015-16 soybean plantings by 300,000 hectares to 33 million hectares, citing planting delays due to dry conditions.
The attaché also noted that southern Brazil, mainly Parana and Rio Grande do Sul states have received too much rainfall amid the El Nino weather phenomenon. Wet conditions have caused some planting delays and created concerns about potential yield losses. “However, officials in both states have reported that most of the crop is in good conditions and it is too early to assess potential yield problems,” the attaché added.
Brazilian production of 98 million tons would still be record high, topping last year’s 96.2-million-ton crop.The attaché kept his forecast for Brazil’s 2015-16 soybean exports unchanged at 55.0 million metric tons, below USDA’s official December estimate of 56.5 million tons.