September 26, 2007

Brazil old soy crop 91 percent sold, new crop sold 25 percent

Brazil's old 2006-07 soy crop is 91 percent sold compared to five-year averages of 93 percent sold at this time, said agribusiness consultancy Celeres on Tuesday (September 25).

Last week, some 89 percent of the crop had already been sold. Brazil harvested around 58 million tonnes of soy from the 2006/07 season, according to official estimates.

New-crop sales continue advancing in comparison to a week ago and historic averages, according to Celeres. Roughly 25 percent of the 2007/08 crop had been sold as of September 21 compared to 22 percent on average over the last five years. High soy prices on the Chicago Board of Trade (CBOT), currently well over US$9 per bushel, are enticing Brazilian growers to lock in prices early.

Some regions of Mato Grosso state are currently planting soy. Mato Grosso is Brazil's top producer state. Soy prices are going for around 32.40 Brazilian reals (US$17.41) per 60-kilogramme bag in Rondonopolis, Mato Grosso. Last year at this time, prices were around BRL20.00 per bag for soy growers there.

Soy premiums and discounts continue at "good levels," by Celeres' analysis, currently at 65 cents under the March 2008 soy contract on the CBOT. Three months ago, discounts were 100 cents, or US$1, below CBOT March soy.

Brazilian growers' strategy of holding back 2006/07 beans has caused buyers to raise local prices closer to Chicago prices. Brazil soy prices tend to trade at a discount.

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