SAO PAULO, Jan 11 (Reuters) – Brazil is likely to produce a record 2016-17 soybean crop of 104.4 million tonnes, up from a November estimate of 102.6 million tonnes, as favourable climate conditions boost production prospects, consultancy Agroconsult said on Wednesday.
Agroconsult, who will start a crop tour this month visiting key producing areas in the country, also forecast a record 2016-17 corn crop of 94.9 million tonnes, up from a November estimate of 92 million tonnes.
Brazil is the world’s largest soy exporter and the second largest corn seller. Unfavorable weather conditions last year reduced production of both grains, hitting corn more severely. Brazil produced 96.3 million tonnes of soybeans and 72 million tonnes of corn in its last crop.
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“Without the influence of El Nino this year the conditions are right for a good crop,” Agroconsult chief analyst Andre Pessoa said during a briefing in Sao Paulo.
He said soy producers were able to plant ahead of their usual timeframe in places such as the top soy-producing state of Mato Grosso and are also harvesting earlier.
“We are certainly going to see a record soy harvesting volume for January,” said Pessoa, declining to provide a number.
He said market conditions will allow Brazilian producers to ship the early soy volumes, since exports from the United States, the world’s second largest exporter, were well advanced and should not pose a strong competition this year.
However, Pessoa said there is a risk of the harvest concentrating in a period when rains are still widespread in Brazil, which could eventually hurt soy quality – a risk that he said has not materialized.
