Market News & Headlines >> Brazilian Soy Acreage headed higher Again
The stage appears set for another significant increase in Brazilian soybean acreage and production in 2014-15 despite lower prices as soybeans remain a better option than corn.
Brazilian consulting firm AgRural on Monday forecast that soybean plantings will likely increase by another 4.9% in 2014-15 to 31 million hectares (76.6 million acres).
"The strong fall in prices that started at the end of June did not significantly alter planting intentions because decisions were made months before," Ag Rural said in a report, noting soy was still more favorably priced than corn.
Given normal growing conditions, Brazil’s 2014-15 crop could rise to 94 million metric tons (3.454 billion bushels), the firm said. USDA continues to forecast Brazil’s next crop at 91 million tons.
Last month, another Brazilian consultant, Safras & Mercados forecast plantings at 31.2 million hectares (77.1 million acres) and said production could rise to 94.5 million tons (3.472 million bushels).
Back in late May, a third Brazilian analyst, Agriconsult also forecast soybean acres would rise 4% and pegged production at 94 million tons.