October 14, 2003

Brazil 2003-04 Soybean Crop 3.1% Planted

Rain in the last few days has allowed soybean planting to progress in Brazil's main producing states, the local Celeres agricultural consultancy said Monday.

According to its latest survey, farmers had planted 3.1% of the projected 58.1-million-metric-ton soybean crop up until Friday, compared with 1% last week and 0.8% at the same point last year.

Planting is also well ahead the average for the past five years of 1.0%, said the consultants in a weekly report.

Fieldwork was most advanced in the states of Mato Grosso and Parana, both of which have 6.0% of potential soybean area planted. At the same point last year, the states had 2% and 1% planted, respectively.

Farmers are attempting to plant early to allow ample time for a winter corn crop.

Crop planting will start gaining momentum from this week, said the report.

Celeres said soybean sales were slow in the past week. The percentage of the 2002-03 crop sold moved forward one percentage point on the week to 89%, compared with 94% at the same stage last year and a five-year average of 97% sold.

The slow sales indicate farmers are better capitalized this year, said the report.

For the 2003-04 crop, the survey detected no significant progress in forward sales, holding steady on the week at 37% of projected production. However, sales remain well in advance of the five-year average for this stage of the season of 26%.

Brazil is the world's second-largest soybean producer after the U.S.