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Brazil soy crop view cut to 112 mln T; exports to fall further -FCStone

By Marcelo Teixeira

SAO PAULO, Feb 1 (Reuters) - Brazil's 2018/19 soybean crop view was slashed to 112.2 million tonnes on Friday by broker and consultancy INTL FCStone, the smallest estimate so far by independent forecasters, as drier-than-normal weather and extreme heat take a toll on Brazil's crop.

FCStone reduced its view by four million tonnes from its January estimate, saying that after the dry spell early in December, rains in January were below average in some key soy fields in central Brazil, likely hurting yields.

Last year, Brazil produced a record crop of almost 120 million tonnes, and exported around 80 million tonnes of that mostly to China amid the trade spat between the Asian nation and the United States.

FCStone also slashed its soy export view for Brazil to only 68 million tonnes, considering that local crushing demand is likely to rise due to a higher biodiesel mix implemented by the government. From this year, diesel in Brazil will have 11 percent of biodiesel, compared to 10 percent in 2018.

The consultancy raised its estimate for corn production, however, to 92.4 million tonnes. It expects production in the second corn crop, which is planted after soybeans are harvested, in a rotation system, to sharply recover from last year.

"Corn exports would probably surpass 30 million tonnes," said FCStone grains analyst Ana Luiza Lodi. (Reporting by Marcelo Teixeira Editing by Chizu Nomiyama)

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