FCStone forecasts a record soy harvest of 124.2 milion tons

According to an estimate by the consultancy INTL FCStone, Brazil is expected to harvest a record 124.2 million tons of soybeans in the 2019/20 season, an increase of just over 200,000 tons year-on-year. “This very positive result will set a historical record for Brazil.  This is despite the losses in Rio Grande do Sul,” said analyst Ana Luiza Lodi.

According to the consultancy production in the state of Rio Grande do Sul was adjusted downwards again to 17.14 million tons.  This is due to the unfavorable climatic conditions in the last month with irrelgular rain and forecast of drought in the northern region of the state for the next ten days. However, other soy producing areas such as the largest producing state, Mato Grosso, have offset the projected reductions in Rio Grande do Sul – traditionally ranked as third largest producing state.

According to FCStone, the soybean harvest in progress points to positive prospects and historical records in several states. In Mato Grosso for example, the harvest should be close to 34.5 million tons, almost 1 million tons above the previous projection and an increase of about 2 million tons in comparison with the previous harvest. The consultancy also raised its February forecast for Brazil`s soybean exports by 3 million tons to 75 million tons. “Despite concerns about a negative impact of the agreement between China and the USA, the line-up data indicates very strong shipments and about 60% of the harvest is already sold,” says Ana Luiza.

Fonte: Reuters

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