March 9, 2005

Brazil 04-05 harvest sees high level of green soybeans

As if heavy soy crop losses weren't enough, hot and dry weather across the southern and southeastern states also means there is a higher-than-usual level of green soybeans, exporters and researchers said.

As a result, exporters are rushing to set discounts for lots with over 10 percent of green beans from the current harvest, which is about 15 percent complete.

Soybeans turn green when exposed to extreme temperatures, such as have been seen across Brazil this summer, as a means of protecting themselves. The result is a low protein and the transformation of oil into fatty acids, according to the Brazil government's crop research agency, Embrapa.

"We are talking to the Agriculture Ministry today to ensure there is no problem in imposing discounts because of the high indexes this year," said Sergio Mendes of the Brazilian Cereal Exporters Association.

If more than 10 percent of soybean lots are green beans, the resultant refined soyoil tends to be muddy-looking and soymeal protein levels tend to fall by more than 30 percent.

Brazil is the world's No. 2 soybean producer. It was due to produce well over 60 million tonnes from the current harvest, but dry weather has led analysts to lower their forecasts to 53 million to 57 million tonnes.