The Brazilian crop scenario is still of high prices in dollars, even with the very beginning of harvest activities. The weather has helped the soybean development, especially in the South of Brazil - region very damaged by the dry weather in the last crop seasons.
The production can reach higher volumes than the ones forecast at the end of 2007. The National Company for Food Supply (Conab) productivity estimative, published in December, was settled at 2,648 kg per hectare, 10.2 percent higher over the average of the 2005/06 season (2,403 kg per hectare). According to the same Institution, the record productivity was reach in the 2002/03 crop season, at 2,817 kg per hectare.
The possibility of a higher soybean production in South America pressured down grain futures at the Chicago board of Trade (CBOT) in the first week of the year.