Brazil’s Soybean Output, Exports May Be Record, Oil World Says

Brazil’s soybean production and exports may climb to records this year as rainfall in Mato Grosso, Parana and Minas Gerais boosts crop prospects and plants develop faster than normal, Oil World said.

Brazil’s soybean crop may be 71 million metric tons, up from last year’s record of 68.7 million tons, and exports may rise 13 percent to an all-time high of 33 million tons, Oil World said in a report today. Normal or above-normal rainfall the past six weeks has improved conditions, the company said.

About 44 percent of soybeans in Mato Grosso do Sul was in the pod-filling stage, up from 37 percent at the same time a year ago, Oil World said. Growers will harvest 24.1 million hectares (59.6 million acres), up from 23.5 million hectares a year earlier, Oil World said. Yields will total 2.93 tons a hectare, unchanged from a year earlier, according to the report.

“The Brazilian soybean crop is in excellent shape almost everywhere and initial harvesting resulted in very high yields,” Oil World said. “Crop development has been very good in the past few weeks almost everywhere.”

Brazil’s exportable supplies will be larger in calendar year 2011 than expected, according to the report. Exports will jump as high as 33 million tons, up from 29.1 million a year ago, while crushing will remain steady at 36 million tons, Oil World said. Domestic soy meal consumption will rise along with expanding poultry and pork industries, according to Oil World.

Oilseeds Planting

Area planted with oilseeds and grains in Brazil increased to a record 44.9 million hectares, Oil World said. The amount of land planted with oilseeds surged while area seeded with corn declined. Cotton area also increased, reaching an 18-year high of 1.3 million hectares, up from 840,000 hectares a year earlier, according to the report.

Argentina’s biodiesel production increased to 550,000 million tons in October through December, up from 490,000 million in the preceding quarter, Oil World said. Rising exports and increased domestic consumption boosted demand, spurring growers to plant more, the company said. Production in Brazil increased by 46 percent to 2.06 million tons in 2010, Oil World said.

To contact the reporter on this story: Tony C. Dreibus in London at tdreibus@bloomberg.net.

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter@bloomberg.net.