November 25, 2009

Brazil's soy trading limited on little supply

Brazil's soy trading was limited and little connected to Chicago prices as the country's farmers are planting the new crop and practically all the previous harvest is sold.

"There is little influence from the international market as there would be during the Brazilian harvesting season," said Flavio de Franca Jr., senior soy analyst at Safras & Mercado in Curitiba. "Chicago rises on some days though it is not reflected here as it normally would."

Brazil's soy crop is harvested in a three-month period starting in mid-February. Brazil's coming 2009-10 soy crop is being planted at an accelerated pace compared with a year earlier, consultant Celeres said in a report. About 74 percent of area expected to be seeded in soy for the crop to be harvested between February and May of next year had been planted as of last Friday, the report said. This compares with 67 percent for a year ago, Celeres said.

"Exports are stopped as there is no supply," Franca said by telephone. "Buyers made their purchases" in advance, he said. A typical price in the Brazilian internal market was BRL45.50 (US$$26.28) for a 60-kilogramme bag in Cascavel in western Parana state Tuesday. The price is "exactly the same" as it was one week ago, Franca said.

About 98 percent of the prior 2008-09 crop has been sold, little changed from 97 percent a year earlier, Celeres said.

Safras & Mercado estimates that Brazil's next soy crop will reach 64.8 million tonnes, Franca said.