Brazil Soy Output Seen Up 10-20 Percent
Poor corn prices could prompt Brazilian producers to expand soybean plantings significantly again in 2003-2004, leading to a production increase of as much as 10 million metric tons or 20%, Brazilian analysts told Reuters News Service.
Brazilian corn prices are higher than a year ago, but soybean prices are up more. Corn prices have fallen sharply in recent weeks due to prospects for a strong winter crop and record total production.
An economist at the Parana State Organization of Cooperatives estimated that if corn prices remain weak and weather cooperates, soybean production could rise by 5 million to 10 million tons. Analysts at Agroconsult, a private consulting firm, pegged next year’s crop at 56-57 million tons.
Editors note: Richard Brock, The Corn and Soybean Digest's Marketing Editor, is president of Brock Associates, a farm market advisory firm, and publisher of The Brock Report.
To see more market perspectives, visit Brock's Web site at www.brockreport.com.