Brazil is the world’s second exporter of soy behind the United States.
“Rainfall undoubtedly improved prospects in the Brazilian region of Rio Grande do Sul while crop results in the Mato Grosso are even better than those originally estimated,” said Oil World.
Oil World also mentioned that Abiove, Brazil’s soy milling industry association last February first increased the estimate of the country’s 2011 crop to 68.8 million tons.
Brazilian agriculture consultants Celeres was also optimistic about a record soy harvest arguing that on time rainfall and improved yields have helped. The Uberlândia based consultants raised its December-January crop estimate from 68.1 million to 68.9 million tons while increasing the average yield from 2.873 kilos per hectare to 2.917 kilos.
The area planted is estimated in 23.9 million hectares, up 2.5% from a year earlier, Celeres said in its latest estimates.
Celeres also advanced that an estimated 49% of Brazil’s 2010-2011 soy crop had been sold in advance as of February 4, compared with 26% a year ago and 47% a week ago.
The consultants estimate that by 4 February 7% of the current crop had been harvested compared with 10% a year ago. The average for this time of the year is 2%, according to Celeres.
“Farmers are selling more in advance to take advantage of good international prices this year,” said Celeres analysts.
Mato Grosso state begun to harvest the soy bean 2010-2011 crop in January, while harvesting in Rio Grande do Sul, Brazil’s third-biggest soy-producing state can extend until May.
Regarding Argentina, Oil World increased its February first 2011 soybean crop estimate one million ton to 48 million tons. However this will be below the 54.4 million tons of last year.