Brazil's soy market soft amid unattractive international prices

Brazil's soy trade remains tame this week on unattractive international prices despite new soy trickling in from the early Brazilian harvest.

March soy on the Chicago Board of Trade closed 7 cents higher at US$9.47 a bushel on Tuesday (Jan 26) after hitting 3 1/2-month lows on Monday (Jan 25).

Soy prices on CBOT recently tumbled, keeping most Brazilian producers away from the market, said analyst Steve Cachia. As a result, only small volumes of trade are being done in Mato Grosso, Brazil's No. 1 soy-producing state, as farmers harvest their first soy of the season, he said.

Cachia said that Brazilian Vegetable Oils Industry Association's estimate of 65.2 million tonnes for the upcoming 2009-10 Brazilian soy crop also did not propel trade on Tuesday.

Analyst Leonardo Menezes said Brazil's farmers sold 24% of the 2009-10 soy as of January 22, compared with 23% in the prior week.

Sellers this week were asking for around 60 cents over the CBOT March soy contract, while buyers wanted around 50 cents over the same contract with little agreement being made, he said.

Soy consultant David Goncalves said trading companies are well stocked and can afford to wait for lower prices as more soy flow in from the harvest.