November 9, 2006

Brazil's soy export registrations up on CBOT prices

Higher prices for soybeans and soyoil on the Chicago Board of Trade have pushed up export registrations for Brazil's new 2006/07 soy crop at least 28 percent, according to the Brazilian Vegetable Oils Industry Association (Abiove).

According to a report released this week, 2.6 million tonnes of the new crop have been sold to exporters as of Oct 15, 558,000 tonnes more than were sold as of Sep 30.

For soyoil, 37,000 tonnes have been sold as of Oct 15 compared to just 7,000 tonnes in the week ending Sep 30.

March 2007 soybeans closed up Tuesday at US$6.78 per bushel, with May settling at US$6.85 per bushel on the CBOT.

Brazil's soy registrations for the new crop are also larger than the previous two seasons. Last year, Brazilians sold 1.2 million tonnes of the 2005/06 crop as of Oct 15 and just 24,000 tonnes of soyoil.

Soymeal export registrations remain flat at 366,000 tonnes since Sep 30, but are higher than the 263,000 tonnes registered as of Oct 15 in the 2005/06 season.

The trend has been for Brazil to ship less oil and meal to world markets and more soybeans due to tax incentives that favour raw material exports over value-added goods like soymeal and soyoil. Abiove estimates Brazil will export 26.8 million tonnes of soybeans in market year 2006/07.