Brazil Dry Weather in Rio Grande do Sul May Hurt Soybean Crop

Only about 20 millimeters of rain have fallen in the state this month, compared with 120 millimeters to 170 millimeters for all of last month, said Paulo Etchuchuri, who runs Sao Paulo- based weather forecaster Somar Meteorologia. The clear skies are stirring concern that dry weather may hurt the soybean crop for a third straight year, he said.

``Farmers are apprehensive down there,'' Etchuchuri said in a telephone interview. ``The rains stopped at a time when crops still need them.''

Soybean crops in Brazil's southernmost state, which accounts for a seventh of the country's output of the oilseed, need regular rainfall this month to flower. Scattered showers forecast for this weekend and at the end of the month may help allay concerns, Etchuchuri said.

``This is a critical moment for soybean flowering in Rio Grande do Sul,'' he said. ``It will be essential for farmers that these showers materialize.''

The state may receive 50 millimeters to 100 millimeters during the entire month of February, Etchuchuri said.

Summer droughts over the past two years in Rio Grande do Sul pared soybean output in Brazil, the world's biggest producer after the U.S.

Rainfall of as much as 170 millimeters in January, compared with less than 100 millimeters a year earlier, already gives the crops an advantage over last year. The state's farmers will harvest the crop next month through April.

In Mato Grosso, Brazil's No. 1 soybean state, and Parana, the second-biggest producer, farmers have already started harvesting.

Source: Bloomberg.com