Brazil soy crop estimate raised

SAO PAULO, Brazil (Reuters) — The 2016-17 Brazilian soybean crop could reach 109.07 million tonnes, almost 15 million tonnes more than in the previous season, as record yields in several states boost output prospects, broker and analyst INTL FCStone said March 7.

The new projection is the most optimistic so far among independent analysts.

The soy projection is almost five million tonnes bigger than its forecast from last month and reflects continuing favourable weather over most of the country’s soybean fields.

“Climate has been nearly perfect in a large part of the planted area. Even in regions which saw smaller precipitation levels, rains were evenly distributed, guaranteeing needed humidity for crop development,” soy market analyst Ana Luiza Lodi said.

FCStone has also raised its view for Brazilian soy exports in the 2016-17 crop year to 59 million tonnes from 57 million projected in February. In the previous season Brazil exported 51.6 million tonnes.

The broker expects a larger corn output as well, saying the weather has been favourable for the cereal in the same way as for soybeans. It projected Brazil’s total corn crop at 93.3 million tonnes, up from 91.5 million last month.

Most of Brazil’s corn production takes place later in the year, after farmers finish the soy harvest.

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