South America Calling

Brazil's CONAB Raises 2015-16 Soy View

Brazil's Agriculture Ministry raised its 2015-16 soybean crop view by approximately one million metric tons to 101.2 mmt to 102.8 mmt Tuesday.

More optimistic forecasts for yields in southern Brazil prompted the hike, said CONAB, the ministry's crop supply agency that compiles the survey.

The agency pegs crop growth at 5.1% to 6.8% this season, based on a 2.1% to 3.8% increase in planted area.

The ministry is normally quite conservative in its forecasts but the latest numbers puts it at the top end of the range of estimates for the current crop.

In Parana, the No. 2 soy state in the south, the outlook is for continuity in the abundant rains that have fallen on the crop so far, which 'considerably favors' the soybean crop, said a CONAB report.

Meanwhile, in Rio Grande do Sul, the southernmost state, excessive rain has delayed the start of planting but the generally wet summer weather outlook remains positive for crop prospects.

As a result, CONAB raise its average yield outlook for the south from 45.5 to 46.3 bushels per acre.

In the top-producing center-west region, soybean production is seen rising 5.1% to 6.2%, reaching 46.2 mmt to 46.7 mmt.

CONAB's figures are closely watched because it runs perhaps the most comprehensive survey of producers.



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