October 23, 2007

Brazil's soy farmers plant 4 percent of 2007/08 crop

Brazil's 2007/08 soy plantings advanced on last week's rains following a prolonged period of dry weather across most of the country, according to a report by agribusiness consulting firm Celeres.

Celeres said that until October 19, Brazil's soy farmers had planted only 4 percent of the crop for 2007/08 compared to 11 percent last year, although the figure is close to the annual average of 5 percent over the last five years.

Mato Grosso, Brazil's No. 1 soy producer, reported that 9 percent of its crop was already planted by October 19 compared to 2 percent on October 12 and 24 percent in the same period of 2006.

Brazil's second-largest soy-producing state, Parana, had planted 4 percent by October 19 compared to 1 percent the week before and 14 percent in 2006, the report said.

Celeres warned, however, that the rainfall is unlikely to be sufficient to replenish the necessary level of ground water and the pace of planting will continue to be slow.

The consultant also said that Brazil's soy growers have secured advance sales of 28 percent of their new 2007/08 crop compared to 18 percent in the same period a year ago.

Farmers in Mato Grosso have sold 41 percent of their harvest this year compared to 29 percent in 2006, while in Parana advanced sales reached 13 percent versus 10 percent last year.

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