May 3, 2007

Brazil's March soy stocks at three-year high of 12.4 million tonnes

Brazil's soybean stocks as of March were 12.4 million tonnes, the highest carry-over volume since 2004, when some 10 million tonnes were still available from the previous crop, the Brazilian Vegetable Oils Industry Association, Abiove, said Wednesday (May 2).

Stocks rose from February figures of just 5.2 million tonnes as new soy from the 2006/07 crop started to come in.

April figures will be available next month, but are likely to show more record high stocks as Brazil is currently in the final stages of harvesting a large 58.9 million tonne soy crop, according to Abiove's figures.

Soy crushers purchased 9.5 million tonnes of soybeans from farmers in March, up from 5 million in February, and up from 8.4 million in March 2006.

Most of the soy is being geared for exports, with a record 26.6 million tonnes expected to be shipped in market year 2007/08 (Feb to Jan).

In the local market, soy demand slipped in March to some of its lowest levels in five years. Soymeal consumption was 567,000 tonnes compared with 773,000 tonnes in March 2006. Consumption was also down on the month, when 583,000 tonnes were consumed. February 2007 soymeal consumption figures are also down from the year-before period of 668,000 tonnes registered in February 2006. The drop is mostly due to higher prices in the inter-harvest period.

Soyoil is no different. Despite a growing demand for soyoil from Brazil's biodiesel makers, soyoil consumption in March was just 226,000 tonnes, down slightly from the 229,000 tonnes in February. By comparison, soyoil consumption for March 2006 was 259,000 tonnes. March consumption for soyoil was the lowest in five years, according to Abiove.