November 12, 2015
Forecasts for Brazil''s soybean output raised for 2015-16 season
With a record soybean production and exports already anticipated, Brazil raised forecasts for the activities on the back of higher cultivation areas and yield prospects boosted by above-average rainfall, Bloomberg reported.
In the 2015-16 season, about 101.2 million tonnes to 102.8 million tonnes of soy could be reaped, according to Conab of the Brazilian agriculture ministry. Last month''s estimate fell on a range of 100.1 million tonnes to 101.9 million tonnes; in the previous season, the output was 96.2 million tonnes.
Soybean production is likely to be driven to about 3.8% as the declining Brazilian currency renders the crop more competitive on the global front.
In addition, Brazilian soybean exports will rise to 55 million tonnes, based on Conab''s estimates which had been raised by two million tonnes. The volume also leapt ahead of last season''s exports by 4.5% but trailed behind the 56.5 million tonnes estimate- provided by the USDA- for the country''s deliveries in the current season.
Due to above-average rainfall brought about by El Nino this year, soybean yields could jump by 2.9% to 3,087kg per hectare. The higher rainfall will reach southern states in Brazil, including Parana, the country''s second biggest soybean producer.
Soybean cultivation for 2015-16 commenced in September and will last till December. The season began in July and will conclude in June next year.
In a related development, corn output is on the decline as result of farmers switching to soybeans planting. Corn production, according to Conab, will drop to 81.1 million tonnes to 82.7 million tonnes, a 4.2% slid from the last season.