CONAB Cuts Brazilian Soybean Forecast


SAO PAULO (Dow Jones) — Brazilian crop agency Conab slashed its forecast for the country’s soybean production in the 2021-2022 growing season after a drought in southern states slammed productivity.

Brazilian farmers will produce 125.5 million metric tons (mmt) of soybeans this season, the agency said Thursday. In January, the agency forecast a crop of 140.5 mmt. Conab raised its estimate for Brazil’s soybean production in the 2020-2021 season to 138.2 mmt from 137.3 mmt.

Conab trimmed its forecast for Brazil’s total corn crop in the 2021-2022 season to 112.3 mmt from 112.9 mmt in the January report.

The La Nina weather phenomenon disrupted the normal pattern of rainfall in the states of Rio Grande do Sul, Santa Catarina and Parana and in part of Mato Grosso do Sul state, Conab said. Productivity in the state of Parana declined 35% compared with the 2020-2021 season, while crop losses in parts of Rio Grande do Sul rose as high as 70%, according to the agency.

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