January 4, 2011

Brazilian soy growers accelerate sales on rising prices

Brazilian soy growers, who produce the world's most soy after the US, sped up sales of this year's crop after prices rose and demand increased, crop forecaster Celeres said.

Farmers have sold 37% of the crop they'll start harvesting this month, more than the 23% sold a year earlier, Celeres said on January 4. Farmers have sold 30% of the crop, on average, during the last five years for this period, it said.

Soy growers are anticipating the sale of the crop that will start being harvested next month to take advantage of rising local and international prices on "firm" demand and restricted supply, Celeres said. Concern over dry weather in Brazil and Argentina will support prices.

Soy futures for March delivery earlier today reached US$14.09 a bushel, the highest since August 2008. The most-active contract gained 34% last year, the biggest annual gain since 2007.

Dry weather in the southern Brazilian states of Rio Grande do Sul and Mato Grasso do Sul may pare output, said Marco Antonio dos Santos, a meteorologist at Sao Paulo-based Somar Meteorologia.