March 10, 2008

Brazil to have minimal soy stock once record crop is sold 

Brazil would not have much soy left over once this crop has been sold, according to the Brazilian Vegetable Oils Industry Association, or Abiove.

Abiove said Friday (March 7, 2008) that crop year-ending stocks should be around 1.5 million tonnes, compared with 2.4 million tonnes last year and 2.3 million the year before.

Abiove, which counts major soy crushers like Bunge Ltd. (BG) and Archer Daniels Midland Co. (ADM) among its ranks, is expecting a record-breaking 61.5-million-tonne soy harvest in Brazil this year.

Crop-ending soymeal stocks should be 927,000 tonnes, roughly on par with the year-ago period and one of the highest volumes of carry-over soymeal to date.

Meanwhile, crop-ending soyoil stocks should also be a high 311,000 tonnes.

Brazil starts harvesting soy in March. The industry considers the soy market year to be from February to January.

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

Contrary to US soy growers, Brazilian soy farmers rarely hold onto carry-over soy stocks, keeping supply and demand generally in line when local and international markets for Brazilian soy are considered.