Brazil's 2009-10 Soy Estimate At 67.4M Tons -Conab

National Commodities Supply Corp., or Conab, on Wednesday estimated Brazil's 2009-10 soy crop at 67.4 million metric tons.

Conab's seventh crop estimate for the record-breaking 2009-10 soy crop is 17.9% above the previous 2008-09 crop of 57.2 million tons. The estimate was trimmed from the prior estimate in March of 67.5 million tons.

Brazil is the world's second-biggest soy producer after the U.S.

"Conab's estimate showed no surprises and remained within most analysts' expectations," Steve Cachia, a grains analyst at Cerealpar in Parana, told Dow Jones Newswires.

Conab's soybean estimate is in line with most private estimates at around 66 million-67 million tons.

Conab, which is part of Brazil's Ministry of Agriculture, said the expansion in soybean production comes as producers increased the area planted with soy at the expense of its main rival, corn. Favorable weather also contributed to the large crop.

Moreover, Brazil's overall productivity also should increase. Brazilian soy farmers are expected to produce on average 2,901 kilograms of beans per hectare in 2009-10 compared with 2,629 kilograms of beans per hectare the year due to favorable weather and using more inputs such as fertilizer.

Conab said the area of land devoted to soy expanded to 23.2 million hectares in 2009-10, compared with 21.7 million hectares in 2008-09 and steady from the March estimate.

Brazilian producers are currently harvesting their soybeans with Mato Grosso, the No. 1 soy-producing state, nearing completion.

In total, Brazil will produce 146.3 million tons of grains in 2009-10, which includes soy, corn and wheat. This compares with 135 million tons of grains in 2008-09.

Conab said that Brazil's total 2009-10 corn crop is expected to reach 54.1 million tons, up 6.1% compared to 51.3 million tons last year.

Brazil, which has two corn harvests per year, should see 33.4 million tons of corn from the first crop and 20.7 million tons from the second, Conab said.

Brazil's corn crop has been helped by favorable weather and good yields despite a fall of 7.7% to 23.2 million hectares in the area planted this season against last season's crop.

Many Brazilian corn farmers this season are opting to plant other crops such as soybeans instead of corn due to more attractive prices, Conab said.

Source: CME Group