October 23, 2009

Brazilian soy growers, the world's second largest producer, are speeding up planting of the oilseed as above-average rains improve soil conditions, Safras and Mercados analyst Flavio Franca Jr. said.

Franca said soy planting was 17 percent complete as of October 16, compared with 8 percent a year earlier and an average of 5 percent in the past five years.

Brazil's Central-West and Southeast, which account for about half the country's soy production, have received more showers than usual, leading farmers to step up planting.

Soy growers in the country will probably sow 22.6 million hectares for the coming harvest, up from 21.8 million in the past season, Franca said. Output may rise to 64.2 million tonnes from 57.3 million tonnes, he said. Most of Brazil's soy harvesting runs from January to April.

Expectations that harvest delays in the US will boost soy prices have led Brazilian farmers to postpone advance sales of next year's crop, Franca said.

Advanced sales for the next season were at 13 percent of the expected harvest as of October 16, compared with 15 percent at the same time last year and an average of 16 percent in the last five years.