Brazil revises soybean production estimate up 1.6%

Brazil’s food statistics agency has revised upwards its estimate for soybean production by 1.3% on its November estimate to 109.2 million mt on higher yields due a result of more favourable weather.

Conab, which releases production statistics monthly, expects Brazil exports to be 64 million mt.

Those figures are down 4% on the 2016/2017 harvest and 3.7% on exports.

“The planting of major crops is over and soybeans and corn continue to be preferred by the producer, accounting for about 89% of the country's grains,” Conab said.

The revision was in line with analyst estimates and reaffirms expectations that Brazil will not be able to repeat its 2016/2017 harvest, when excellent growing conditions saw the world’s biggest exporter pump out 114 million mt of soybeans and export 66.5 million mt.

In terms of corn, the agency predicts the crop to reach 92.2 million mt, broadly in line with its November estimate, but down 5.7% on the 97.8 million mt produced last year.

“The first harvest can reach smaller numbers and reach 25 million mt, while the second harvest can reach 67.2 million mt, almost matching the record of past production of 67.4 million tonnes,” Conab said in its report.

The figures were also in line with analyst estimates.