September 4, 2007

Brazil expects to harvest 3 million tonnes more soy from new crop

Brazil, with soy planting starting in October, is expected to harvest around 63 million tonne of soy in the new crop, up from around 60 million tonnes in the 2006-07 crop, according to private estimates.

Meanwhile, Brazil's 2007-08 soy crop is 19 percent sold as of Aug. 31, local consultancy Celeres reported on Monday.

Brazil sold 85 percent of its 2006-07 crop, below the five-year selling average of around 89 percent, according to Celeres. Nearly all of the soy from the old crop has been sold in the center-west soy belt, with 72 percent sold in the south, the second largest producer region.

Celeres analysts said sales of the old crop are expected to be more brisk in the weeks ahead as farmers get busy preparing the soil for the 2007-08 season and will need cash.

Soy prices remain favourable throughout the country, with Rondonopolis, Mato Grosso, prices around US$15.90 per 60-kilogramme bag and Cascavel, Parana prices, around US$16.80 per bag, according to Celeres.

Last year, prices were as low as US$9 a bag in some towns in Mato Grosso, Brazil's top soy producing state.