February 11, 2009

Brazilian farmers harvested 3 percent of the new 2008-09 soy crop by this past Friday (February 13), according to agribusiness consultancy Celeres.

Celeres said that Brazil's soy harvest on Friday was up from 1 percent on January 30 and steady compared with a five-year average.

"The soy harvest should continue to progress steadily despite rain across many regions," Leonardo Menezes, an analyst at Brazil-based Celeres, told Dow Jones Newswires on Tuesday.

Brazil's soy harvest should reach around 6 percent to 8 percent by next week, which is broadly in line with last year, Menezes said.

Mato Grosso, Brazil's No. 1 soy-producing state, had harvested 8 percent of its soy area by Friday, while Parana, the No. 2 producer, had harvested 3 percent. Rio Grande do Sul, the No. 3 soy producer, hasn't yet started its harvest, according to Celeres.

Farmers in the centre-west soy belt are traditionally first to start harvesting, ahead of the likes of Parana and Rio Grande do Sul in the south of Brazil.

Menezes said Brazilian sales of new 2008-09 soy crop remained slow in the week to Friday as farmers hold back from selling and speculate on better short-term prices due to smaller crop estimates.

Celeres said Brazilian farmers had sold 31 percent of their 2008-09 soy crop in the week compared to 30 percent from the week before, and compared with a five-year average of 46 percent.

Brazil is the No. 2 soy producer behind the US.