March 2, 2006

 

Brazil's soybean registrations at 22 percent for 2006/07 crop

 

 

Registrations of Brazilian soybean exports for market year 2006/07 are at 22 percent of the estimated 57.1 million tonne harvest, compared with 12.6 percent of the estimated 52.6 million soy crop in market year 2005/06, according to government figures released by the Brazilian Vegetable Oils Industry Association (Abiove) on Wednesday Mar 1.

 

In market year 2004/05, however, Brazil had already promised 50.2 percent of its 50,085 million tonne soy harvest to world markets.

 

Soybean registrations picked up again as of Feb 15 to 5.4 million tonnes, compared with 4.4 million tonnes registered on Jan 31, and well ahead of the 2.8 million registered from the same period in market year 2005/06.

 

Wednesday's numbers for Feb 15 continued to show a significant drop in soybean registrations from the 9.5 million tonnes seen at the same point in the 2004/05 season, when favourable international soy prices, high Chinese soybean demand and a favourable exchange rate between the Brazilian real and the US dollar contributed to the soy export market.

 

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

 

Meanwhile, soymeal registrations for market year 2006/07 rose to 1.6 million tonnes compared to 1.2 million tonnes registered on Jan 31. In the 2005/06 period, 2.3 million tonnes of soymeal were registered for exports at this time.

 

The trend has been for the Brazilian soy market to export less soybean derivatives as high taxes, logistical problems and a strong local currency has caused Brazilian soymeal to lose market share to Argentina. In market year 2004/05, for instance, Brazil soymeal registrations totalled 3.6 million tonnes at this time.

 

Abiove maintains its market year 2006/07 soymeal export total of 13.4 million tonnes, compared with the 13.9 million tonnes to be exported in the 2005/06 market year.

 

Soyoil export registrations to Feb 15 rose slightly over the last two weeks to 343,000 tonnes, compared with 300,000 tonnes registered on Jan 31, Abiove reported. Soyoil totals have pulled back recently from the market year 2005/06 registrations of 433,000 tonnes.

 

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

 

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