Market News & Headlines >> Small Cut to Brazil Soy Crop Estimate
Brazil’s agriculture ministry on Thursday cut its forecast for 2018/19 soybean production by a modest 1.1%, less than many in the soybean trade were anticipating.
CONAB, the supply arm of the agriculture ministry pegged soybean production at 118.80 million metric tons compared with a December estimate of 120.07 million and last year’s record large crop, estimated at 119.30 million tons.
A number of recent crop estimates from analysts in Brazil were lower than the CONAB estimate with hot, dry December weather in Brazil’s southwestern growing areas reportedly hurting yields.
CONAB also pegged Brazil’s total 2018/19 corn production at 90.10 million metric tons, up marginally from its December estimate of 90.02 million and up from last year’s drought-shortened crop of 81.40 million tons.
Traders were anticipating a modest reduction in CONAB’s corn crop estimate due to the adverse weather in southwestern growing areas.