February 9, 2006

 

Brazil's soybean registrations put at 18 percent for 2006/07 crop

 

 

Registrations of Brazilian soybean exports for the 2006/07 market year amount to 18 percent of the estimated 57.4 million-tonne harvest, compared with 8.1 percent of the estimated 52.6 million-tonne crop in 2005/06, according to government figures released Wednesday by the Brazilian Vegetable Oils Industry Association (Abiove).

 

In market year 2004/05, Brazil had promised 42.7 percent of its 50,085 million-tonne soy harvest to world markets.

 

Soybean registrations picked up again as of Jan 31 to 4.4 million tonnes, compared with 3.2 million tonnes registered on Jan 15, and well ahead of the 1.8 million registered from the same period in 2005/06.

 

Wednesday's numbers for Jan 31 continued to show a significant drop in soybean registrations from the 8 million tonnes seen at the same point in the 2004/05 season, when favourable international soy prices, high Chinese demand and a favourable exchange rate between the Brazilian real and the US dollar contributed to the soy export market.

 

Abiove maintained its 2006/07 soybean export forecast of 24.5 million tonnes, up from an estimated 22.3 million tonnes the government expects soy producers sold internationally in 2005/06.

 

Meanwhile, soymeal registrations for 2006/07 rose to 1.2 million tonnes from 688,000 tonnes registered on Jan 15. In 2005/06, 1.3 million tonnes of soymeal were registered for exports at this time.

 

Soybean derivative exports from the Brazilian market have been on a declining trend as high taxes, logistical problems and a strong local currency cause Brazilian soymeal to lose market share to Argentina. In 2004/05, for example, Brazil soymeal registrations totalled 3 million tonnes.

 

Abiove estimates a slight increase, though, in soymeal exports because of the larger Brazilian crop. Soymeal export estimates remained at 13.4 million tonnes this week compared with the expected 13.9 million tonnes to be exported in 2005/06.

 

Soyoil export registrations to Jan 31 nearly doubled to 300,000 tonnes from 160,00 tonnes registered on Jan 15, Abiove reported. The number is a little closer to the 317,000 tonnes sold currently in the 2005/06 market year.

 

Exports for soyoil in 2006/07 are still put at 2.45 million tonnes, down from the 2.5 million tonnes expected to end the 2005/06 market year. The number is equivalent to the 2.44 million tonnes exported in 2004/05.

 

Brazil is the world's second largest soybean producer after the US.