South America Calling

Brazil's Agriculture Ministry Wednesday lowered its soybean forecast by 4.6 million metric tons (mmt), following on from reductions by private consultants in recent weeks.

The Ministry's CONAB agency pegged output at 85.4 mmt, up 4.8% on the year before.

The number is in line with recent local forecasts that peg the crop at 85-86 mmt, which is a far cry from the 91-93 mmt estimates circulating in January.

The losses were principally in the south, where in Parana the crop has been hit hard by the absence of rains and high temperatures and in Rio Grande do Sul by badly distributed rains over the last 30 days.

In the center-west, a lack of rain in Goias state caused issues, while in the southeastern states of Minas Gerais and Sao Paulo, drought has also hurt the crop.

Corn production is pegged at 75.2 mmt, slightly down from its February number if 75.5 mmt.

(AG)

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