Soybean planting intentions for Brazil for the 2006-07 season slid 7.6% according to wire reports. Most reductions come from the center-west and southeast due to low local soybean prices, an unfavorable foreign exchange rate and farmer preference for more profitable crops including cotton and sugarcane.
However, southern farms in Parana and Rio Grande do Sul could boost planted area by 1% due to lower overhead costs and the proximity of ports. Most Brazil soy growers have not planted their crop yet, but at least one organization - the National Commodities Supply Corp., called Conab - says the crop will hit between 53.5 million and 55 million metric tons. That would make the 2006-07 crop similar to the previous season where about 53.4 million tons were harvested.
Worst case estimates have put the crop closer to 51 million tons, according to some reports. Worries over weather problems and actual planting in Mato Grosso, could impact final production. Farmers in the northern areas of Mato Grosso have started planting, and the rest of the country should start planting in the next two weeks, weather permitting.
Powered by iNet Solutions Group ©2011 All Rights Reserved.