Nov 06, 2009
Conab Reports Soybeans Only Row Crop Expanding In Brazil
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Of all the major row crops grown in Brazil, soybeans are the only crop to register an increase in acreage for the 2009-10 growing season. This is according to the latest monthly report issued by Conab. Currently, Conab is estimating that the Brazilian soybean acreage will increase 630,000 to 1,020,000 hectares compared to last year or an increase of 2.9% to 4.7%. The total 2009-10 Brazilian soybean production is estimated at between 62.5 to 63.6 million tons, which would represent an increase of 9.5% to 11.4% compared to last year.
Soybean acreage increases are expected in all the major producing states of Brazil. If you take the mid-point of Conab's acreage estimates, they estimate that the soybean acreage in Parana will increase 244,000 hectares, in Mato Grosso the increase will be 131,000 hectares, Rio Grande do Sul up 115,000 hectares, and Goias up 92,000 hectares. They now estimate the nationwide soybean yield at 2,796 kg/ha (40.5 bu/ac), which is up slightly compared to the 2,627 kg/ha (38.1 bu/ac) harvested last year. The only big yield increase is expected in the state of Parana where this year the crop is expected to yield 2,990 kg/ha (43.3 bu/ac) compared to 2,337 kg/ha (33.9 bu/ac) last year. Last year of course, the soybeans in Parana were severely affected by dry weather during December and January.
Soybean acreage in Brazil is increasing while acreage decreases are being registered for the other major row crops such as full-season corn (down 5.7 to 8.3%), rice (down 1%), and cotton (down 4-10%). Soybeans have the advantage over the other crops because they are cheaper to grow and easier to sell than the other crops. Domestic corn prices in Brazil are very low, which encouraged farmers in southern Brazil to switch some of their full-season corn production to additional soybean production.
The weather in Brazil has been beneficial for rapid soybean planting and crop establishment. The Brazilian National Institute of Meteorology (Instituto Nacional de Meteorologia - INMET) is forecasting above normal rainfall for November, and December. If the forecast verifies, the Brazilian soybean crop should continue to be rated good to very good.