Strong real seen hurting Brazil soy exports

Brazil's 2010-11 (Feb-Jan) soy exports are expected to fall from this year's record levels by 7 percent due to the strong real against the dollar, according to the Brazilian Vegetable Oils Industry Association (Abiove).

Abiove president Carlo Lovatelli said last week that international soy prices were likely to remain firm going forward due to the need to rebuild low global stocks.

Lovatelli adds that any eventual drop in international prices should not be very big due to a good part of production going to rebuild stocks that are now thin.

He said that the world's three largest producers, the US, Brazil and Argentina were expected to have record soy harvests, but the extra supply would still be insufficient to bring down international prices significantly.

He expects Chicago soy futures prices to oscillate between US$8.50 and US$9.50 a bushel in 2010.

Brazil, the world's No. 2 soy producer and exporter after the US, will begin harvesting a record soy crop January seen at around 63 million tonnes.