Brazil soy sales tempered after recent brisk trade

Brazil's soy trade stalled on Tuesday (March 23) after brisk trade the previous two days.

"Brazil's soy trade was very good on Monday and Friday as soy prices rose on CBOT and the dollar remained favourable against the Brazilian real," a chief trader at a major US exporter said. But trade stalled Tuesday as soy prices on CBOT remained lackluster and exchange rates were unfavorable, he said.

Benchmark May soy futures on the CBOT were two cents higher at US$9.70 a bushel in recent activity Tuesday.

David Goncalves, a soy analyst at FC Stone in Campinas, said some trade was being done for US$15.50 per 60-kilogramme bag in the south of Mato Grosso, Brazil's No. 1 soy-producing state.

Goncalves said eyes will be on the USDA's planting-intentions and quarterly stocks reports on March 31. A reduction in US stocks could help to push CBOT prices upward, stimulating trade in Brazil, he said.

In Brazil, production is seen jumping more than 18% from last year to 67.5 million tonnes, according to the National Commodities Supply Corp., or Conab.

Across the border in Argentina, the harvest is just starting. Analysts estimate Argentina's soy crop at 52-55 million tonnes, up from Argentina's previous record of 48.8 million tonnes grown in 2006-07.