September 19, 2007

Brazil sells 36 percent of 2007/08 soy crop as of September 12

Brazil has sold 36 percent of its 2007-08 soy crop as of September 12, consulting firm AgRural said on Tuesday (September 18).

The high percentage of advanced sales of a crop yet to be planted is due to high soy prices on the Chicago Board of Trade, currently over US$9 per bushel. In August, Brazil soy growers had around 9 percent of the crop sold and last September, Brazil soy growers sold just 6 percent of the 2006/07 crop.

Mato Grosso, the No. 1 soy-producing state, has sold an estimated 50 percent of its new crop. In Parana, the No. 2 producer, some 39 percent of the crop has been sold at this time. Rio Grande do Sul, the third-largest producer, has around 10 percent of the crop sold. The state's smaller producers tend to sell in the spot market at harvest.

Brazil should harvest around 63.3 million tonnes of soy this season, making it a crop record.

AgRural put Brazil's 2006/07 crop at 59.3 million tonnes. Ninety-one percent of the crop has been sold as of September 12, roughly on par with the same period last year.

Brazil is the No. 2 soy producer behind the US.