December 5, 2007

Brazil new soy crop 87 percent planted; behind schedule
 

Brazil's 2007-08 soy crop is 87 percent planted as of November 30, slightly behind schedule when compared to the 2006-07 planting season, agribusiness consultancy Celeres said on Tuesday (December 4, 2007).

Dry weather led to a late start to the planting season in Mato Grosso, the principal soy producing state in Brazil. Rains have returned to normal levels at this time.

In Parana and Rio Grande do Sul states, the number two and three producers, respectively, farmers opted for corn instead due to favorable prices and low supply in the local market.

Celeres estimates that Brazil will plant 22.2 million hectares of soy in 2007-08, 6.9 percent more than 2006-07. Planted area estimates have been lowered over the last month due to the late start to planting in Mato Grosso, Celeres said.

Planted area was also lowered as a result by around 1.2 percent to 22.2 million hectares.

Very little activity is occurring in the Brazilian soy market these days. Expectations are for business to pick up again at the start of 2008, traders and brokers told Dow Jones Newswires recently.

Celeres recommended in its report that its farmer clients sell at least 40 percent of their 2007-08 crop, and then sit out the market until mid-January when there would be a better sense of global soybean supply and demand.

Yields for the new crop are estimated to come in around 2,800 kilograms per hectare, 1.2 percent lower than previous Celeres estimates.

Total production is seen coming in at 62.2 million tonnes, 5.6 percent greater than the 2006-07 season, but 1.3 percent lower than Celeres' previous estimates.

Brazil is the No. 2 soy producer behind the US.