Brazil’s Conab cuts 2023/24 soybean production view but still sees record output

Brazilian crop agency Conab has cut its forecast for Brazil’s 2023/24 soybean production but still predicts the South American nation will produce a record crop in the 2023/24 cycle, according to a statement on Thursday (12/07).

Conab said Brazilian soybean farmers will reap 160.177 million metric tons of the oilseed, less than the 162.420 million tons it had forecast in November, citing planting delays related to the El Niño weather pattern.

Conab said that by December 2, 83.1% of the soybean areas had already been sown while in the 2022/23 cycle 90.7% of the areas were planted in Brazil, the world’s biggest supplier of the commodity.

“In some states, irregular rains and high temperatures have already impacted the yield potential of crops, which is why we reduced our production estimate for soybeans this harvest,” Conab said.

Conab has lagged private consultancies, which were quicker to cut Brazil’s soybean output potential in recent weeks due to adverse weather conditions.

When the season started, most consultancies expected Brazil’s soybean harvest to be around 164 million tons.

But as lack of rains in the Center West of Brazil delayed planting, or forced many farmers to replant crops, expectations were lowered to as little as 150.67 million tons by at least one forecaster.

(Reporting by Ana Mano; Editing by Steven Grattan)

Source: Reuters via Nasdaq

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