July 28, 2010

Brazil sells 78% of 2009-10 soy crop

As of July 23, Brazilian farmers have sold 78% of the 2009-10 soy crop, according to local agricultural consultancy Celeres in a weekly report.

Celeres said that Brazil, which is the world's No. 2 soy producer after the US, has shown a rise in soy sales from 76% the week before. Sales are down from 83% at the same time a year ago.

Brazil is expected to have produced a record 68.5 million tonnes of soy for the 2009-10 crop season, compared with 57 million tonnes the previous crop year.

Many producers sold cautiously during the year and recently made new sales during periods of high volatility of the CBOT, Celeres said. This also coincided with a period in which farmers plan to raise working capital for the upcoming 2010-11 crop season, the report said.

Brazil finished harvesting the 2009-10 soy crop in May. Farmers in Mato Grosso, Brazil's No. 1 soy-producing state, have sold 94% of their soy as of Friday compared to 93% the week before and steady with 94% a year ago, Celeres said.

Mato Grosso's farmers were the first to start their harvest and took the opportunity to sell earlier than other states.

Parana, the No. 2 soy-producing state, sold 66% of its beans as of Friday compared to 64% the week before and 79% a year earlier, Celeres said.

Rio Grande do Sul, the country's No. 3 soy-producing state, sold 49% of its soy as of July 23 versus 46% the prior week and 57% a year earlier, Celeres said. Rio Grande do Sul is typically one of the last states to harvest and sell its beans.