March 9, 2009

Argentina's soy production is expected to reach 41.7 million tonnes during the 2008/09 season, down 10 percent, against 50 million tonnes estimated for October.

Soy quotation in Argentina rose driven by increase in Chicago and the appreciation of the US dollar when compared to the peso, and soy price reached US$775 per tonne.

Soy prices moved in a narrow range during the last week amidst lower demand. Export of soymeal in the month of February 2009 was at 375,098 tonnes, down 38.52 percent as compared to 610,125 tonnes in February 2008.

However, export of soymeal from April 2008 to February 2009 was 3.9 million tonnes, up 20 percent as compared to 3.2 million tonnes during the same period last year.

According to the Brazilian Agricultural Consultancy Celeres, Brazil is expected to produce 57.7 million tonnes of soy in the 2008-09 crops against 59.6 million tonnes in 2007-08, down 4.36 percent as compared to previous year.

Brazilian soy farmers harvested around 18 percent of the total crop as compared to 12 percent a week before.

According to an USDA report, Argentina's soy production estimates to 43.8 million tonnes.

In the coming week, prices are expected to move slightly higher due to declining arrivals of soy and depreciation of the Indian rupee against US dollars may boost up soymeal export.