February 11, 2015

Brazilian soybean and corn production estimates have been lowered because of regional issues of drought and excessive rains. Brazil’s agricultural bureau, Conab has revised its soybean production forecast for 2013/14 down to 85.4 million tons, from an estimate of 90 million tons last month.  Corn production estimates for the country have been more slightly lowered, with new estimates set at 75.2 million tons, down from 75.5 million tons. Over the past two months, regions in the south and southeast of the country have been experiencing the worst drought in decades, with temperatures as high as 102 degrees Fahrenheit and no rain for 42 consecutive days,  while areas in the west have been dealing with excessive rains.  Average soybean yields in the state of Parana will likely fall to 51 bags per hectare, down from an average of 56 bags per hectare the year before. Some believe that the negative effects of the adverse weather have been overestimated, with output in the high-producing state of Mato Grosso remaining strong. Even taking into account the lower production estimates, overall soybean output for the country is expected to still outpace last year’s record 81.5 million ton harvest. To read further, including production estimates issued by Agroconsult, INTL FCStone, and Celeres:

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