Soyabean production in Brazil is likely to stagnate early in 2009 due partly to government action against plantings on illegal land, German oilseeds analysts Oil World said in a report. But it said soyabean production in Argentina could reach record levels in early 2009 as soyabeans benefit from much lower than expected plantings of wheat and corn.
Oil World said it had reduced its estimate of Brazilian soyabean production for early 2009 to 60-61 million tonnes, little changed from this year's 60.3 million tonnes but below a previous estimate of 63 million tonnes. "The government is favouring plantings and production of wheat, corn and black beans in an effort to better satisfy the growing domestic requirements," Hamburg-based Oil World said in a report released this week.
It also said that due to sharp declines in soyabean prices world-wide, the prices offered to farmers in the Mato Grosso area were reported to be below production costs. It added that higher fertiliser costs were making farmers cut back their use.
"There is the risk that reduced application of fertilisers and other inputs will curb yields and total production," Oil World said in the report. It highlighted the launch of an Amazon rainforest protection fund by the Brazilian government, which it said would promote alternatives to forest-clearing for people living in the Amazon, and limit crop cultivation and livestock production in the region.
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