Mumbai, May 04 (Commoditiescontrol):Torrential rains continue to devastate Brazil's top soybean-producing state, Rio Grande do Sul, potentially slashing production output by up to 15%. This disruption poses a significant threat to the global soybean supply chain, which could impact prices.
The relentless rains have not only flooded fields but also damaged infrastructure, leaving entire cities submerged. This setback comes after two years of drought that had already strained Brazil's soybean production. Farmers were initially hopeful for a record-breaking harvest to offset prior losses, but recent conditions make these expectations unlikely.
Leandro da Silva, grains unit manager at farm cooperative Cotrisal, estimates the rains could reduce Rio Grande do Sul's production to between 19 million and 20 million metric tons. This represents a substantial decline from previous forecasts by national crop agency Conab (21.89 million tons) and state crop agency Emater (22.25 million tons).
Emater's recent report acknowledged logistical disruptions due to the weather, a factor likely to exacerbate supply chain issues. Conab is expected to release a revised national grains projection on May 14th, which will shed further light on the extent of the damage.
(By Commoditiescontrol Bureau; +91-9820130172)
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