November 7, 2006

Brazil's 2006 soy exports poised to break record

Brazil's soybean exports for calendar year 2006 will break a record, with January to September exports at 22,066,365 tonnes, according to statistics of nine ports compiled by the Transcar Shipping Agency Monday (Nov 6).

Brazil shipped 19,066,972 tonnes over the January to September 2005 period. Brazil's last export record was 22.3 million tonnes, set last year.

Brazil soy crushers estimate that exports to close the year will be 25.2 million tonnes, according to the

Brazilian Vegetable Oils Industry Association, or Abiove.

Exports of soybeans have been sliding over the past three months as availability of soy in the local market declines in the interharvest period.

Brazil shipped 1.7 million tonnes in October, down from 1.9 million in September and 2.9 million tonnes in August. If Brazil exports 1.7 million tonnes again over the next two months, the country would have met industry estimates despite a slow down in May caused by producers in Parana and Mato Grosso, the top two soy producing states. Farmers there were protesting low local commodity prices and demanding government action.

Brazil is the world's no. 2 soy producer and exporter.