November 22, 2007

 

Brazil new soy crop 31 percent sold as of November 16 
 

 

Thirty-one percent of Brazil's 2007-08 soy crop has been sold as of November 16, agribusiness consultancy Celeres said late Tuesday (November 20, 2007).

 

Celeres estimates that Brazil soy growers will be planting around 22 million hectares of soys this season, with total output of around 63.4 million tonnes. Their number is the highest of all current market estimates, which are as low as 58 million tonnes.

 

Sales of 2007-08 soy are more advanced than they were at this time last year thanks to high soy prices on the Chicago Board of Trade. Soy prices are near $11 per bushel for the March and May contracts.

 

Mato Grosso, the No. 1 soy producer, has sold 44 percent of its new crop already compared to 30 percent at this time last year. However, sales haven't increased much on the week.

 

The same holds for No. 2 producer, Parana, with 16 percent sold as of November 16 compared to 10 percent last year. Sales volume is up one percentage point on the week.

 

Rio Grande do Sul, the No. 3 producer, has locked in prices for 14 percent of its crop, no change from the previous week but up from 0 percent at this time last year.

 

From January to October 31, Brazil shipped 9.7 million tonnes of soy to China, down from 10.5 million tonnes last year.

 

Second up was Holland importing 3 million tonnes, down from 3.4 million tonnes last year. Third was Spain, importing 2 million tonnes from January to October 31, up from 1.5 million last year, according to Celeres figures based on government data.

 

Most of the soy is being exported from origins in Mato Grosso, with 6.4 million tonnes shipped compared to 9.2 million tonnes last year. Second was Rio Grande do Sul this year, following the state's recuperation from two disastrous crop seasons. Exports leaving the state rose to 5.1 million tonnes compared to 2.9 million last year.

 

Soy originating from Parana was in third with 3.5 million tonnes so far this year, up from 2.8 million last year.

 

France has surpassed Holland so far this year as Brazil's leading destination for soymeal. Brazil exported 2.4 million tonnes of soymeal to French ports, up from 2 million last year. Holland ports imported 2.1 million tonnes, relatively stable from the year ago period.

 

Brazil is the world's No. 2 soy producer behind the US.