BRAZIL - Weather has been the main focus for the oilseeds complex of late. Recent weeks have seen wetter than usual weather in the US bringing delays to soyabean harvest progress, writes Brenda Mullan, Analyst, AHDB/HGCA Market Intelligence.
Whereas in South America, particularly in northern parts of Brazil, drier than normal weather conditions have prevailed, which have led to significant declines in soil moisture and stalled soyabean planting progress.
According to consultancy AgRural, only 10 per cent of Brazilian soyabeans have been planted so far; the slowest at this point in the season since 2008/09.
As a result, Oil World has reduced their forecast for 2014/15 Brazilian soyabean production by 3Mt from their previous estimate, to 89Mt.
While this still represents record output, Oil World’s latest forecast is less than other industry expectations.
Looking ahead, improved weather conditions are forecast, with widespread rain predicted next week.
In particular, heavier rains forecast in the main soyabean growing region of Mato Grosso later next week are expected to allow the rate of sowing to pick up.
TheCropSite News Desk