Brazil’s soy crop estimate raised in 2010-11

Brazil's 2010-11 soy crop will reach 69.8 million metric tons, agricultural consultancy Celeres said in a raised estimate.

Citing "favorable weather," Celeres said it raised its estimates of productivity for the Brazilian crop in initial stages of collecting. The Uberlandia, Brazil-based consultancy had pegged the 2010-11 Brazilian soy crop at 68.1 million tons in estimates in January and December.

Celeres raised its estimate of productivity for the crop to 2,917 kilograms per hectare, up from estimates of 2,873 kilos per hectare made in January and December. The latest estimate, though, is down 0.7% from the 2009-10 crop, according the consultancy.

March soybeans, the most active contract on the Chicago Board of Trade, was down 4 1/4 cents at $14.29 1/4 a bushel, and November soy was down 1 1/2 cents at $13.67 1/2.

The area seeded to soybeans for the 2010-11 Brazilian soy crop is an estimated 23.9 million hectares, an increase of 2.5% from the area planted a year earlier, Celeres said in its new estimates released Monday.

Celeres estimated that 49% of Brazil's 2010-2011 soy crop had been sold in advance as of Feb. 4, a figure which compares with 26% a year ago and 47% a week ago.

The consultancy estimated that 7% of the current crop had been harvested as of Feb. 4 compared with 10% a year ago. The average for this time of the year is 2%, according to Celeres.

Farmers are selling more in advance to take advantage of good prices this year, analysts at the consultancy told Dow Jones Newswires last month.

Brazil began collecting its 2010-2011 soy crop in Mato Grosso state in January. Harvesting ends in Rio Grande do Sul, the country's third-biggest soy-producing state in May.