August 7, 2007

Brazil's 2007/08 soy crop 14 percent sold as of August 3

Brazil's soy growers have sold about 14 percent of the 2007/08 soy crop before they've started planting, thanks to high international soy prices on the Chicago Board of Trade, agribusiness consultancy Celeres said Monday.

Last year at this time, Brazil soy growers had sold 6 percent of their crop.

Brazilian farmers plant soy in October.

Celeres estimates that Brazil will harvest around 61.4 million tonnes of soybeans in the 2007/08 crop.

Higher production could lead to a record soy crush of 31.2 million tonnes. Brazil is expected to crush around 29.3 million tonnes of soybeans in the 2006/07 season.

Celeres said the extra soy would be needed to make soyoil for Brazil's nascent biodiesel industry - soyoil constitutes about 80 percent of the oilseeds that industry uses.

Brazil should export around 26.1 million tonnes of soybeans next year, up 2.4 percent from 2006, Celeres said. The crush and export figures are close to industry estimates made by the Brazilian Vegetable Oils Industry Association, Abiove, on July 31.

Celeres said that 78 percent of the 2006/07 crop has been sold as of Friday (August 3). The number is similar to a Safras & Mercado estimate made Friday, which said 79 percent of the 2006/07 crop had been sold.

Brazil is the world's No. 2 soy producer behind the US.