March 27, 2012

Brazil's 2011/12 soy crop sales up 65%

Of the total expected production of 69.8 million tonnes, Brazil's 2011/12 soy crop sales rose to 65%, up from 58% a week earlier, analysts Celeres said on Monday (Mar 26).

Harvest is peaking across the main centre-west and southern soy belts, where rain has been less than optimal this year and will keep the world's No. two soy producer from surpassing last year's record harvest.

Grain futures markets are percolating on concerns of the dry weather over Brazil, Argentina and Paraguay, which together account for over half the world's trade in soy, an important source of protein.

Celeres said harvest had reached 68% of the crop area by March 23, up from 58% in the week prior. Last year at this time, 56% of the crop had been collected. The No. one soy state Mato Grosso, No. two soy state Parana and No. four soy state Goias were the most advanced in harvest.

The south is due to get rain early this week that should help parched crops that are still developing but will not reverse losses already caused by the drought in the region since November. The centre-west producers should see wetter conditions this week which will help the winter corn crop that was recently planted after the summer harvest of corn and soy.

Brazil is the world's second biggest soy producer after the US and is expected to surpass it to become the largest exporter of the oilseed this year for the first time since 2005/06.