July 19, 2006

 

Brazil's soy registrations at 89 percent for 2006/07 crop

 

 

Registrations of Brazilian soybean exports for market year 2006/07 are at 89 percent of the estimated 56.1 million tonne harvest as of Jul 15, or roughly 22.3 million tonnes of soy registered for export compared to 21.3 million tonnes registered on Jun 30, the Brazilian Vegetable Oils Industry Association, or Abiove, said Monday (Jul 17).

 

By comparison, Brazil promised 85 percent of its 53-million-tonne crop in market year 2005/06 and 98 percent of its 50-million-tonne crop in market year 2004/05.

 

Nevertheless, Brazil has more soybeans registered for export at this time than it has over the last five years, Abiove reported, due to the ongoing international demand from Europe and China.

 

Abiove maintained its market year 2006/07 soybean exports to be a record- breaking 25,200 tonnes, compared to 22.4 tonnes in market year 2005/06 and 19 million tonnes in 2004/05.

 

Brazil's 2006/07 soy crush remains unchanged at 28.2 million tonnes yet again in the Jul 15 estimate, Brazil's lowest crush in three years.

 

 

SOY DERIVATIVES

 

Soymeal registrations for market year 2006/07 rose to 7.7 million tonnes compared to 7.3 million in the June 30 report. Sixty-two percent of Brazil's soymeal has been registered for the export markets as of Jul 15, compared to 67 percent last year and 70 percent two years ago, or market year 2004/05.

 

Abiove maintained Brazil's soymeal export volume at 12.6 million tonnes in market year 2006/07, after lowering it two weeks ago from 12.9 million tonnes back in mid June. Last year--2005/06--Brazil exported 13.9 million tonnes. Brazil has been losing market share in the soy meal markets because of a tax law that favours the export of raw material, competition from Argentina, and a growing soy crush in China, according to industry consensus.

 

Soyoil export registrations to Jul 15 rose only slightly to 1.4 million tonnes. Registrations are the lowest they have been for this time of year since 2002/03, when 1.2 million tonnes of soyoil were registered for shipments.

 

Soyoil export registrations were put at 63 percent, compared to 67 percent in market year 2005/06 and 70 percent in market year 2004/05.

 

Abiove maintained its total 2006/07 soyoil export forecast of 2.2 million tonnes, the lowest soyoil export volume since 2002/03 when 2 million tonnes were shipped abroad.

 

Brazil is the world's second biggest soybean producer after the US.