May 8, 2007

Celeres: Brazil's new soy crop 60 percent sold, sales slowing

Brazilian agribusiness consulting firm Celeres said Monday (May 7) that 60 percent of its estimated 58.8 million-tonne soy crop has been sold as of last week compared with 66 percent of the 2005/06 crop sold at this time last year.

Brazilian soy growers have been using alternative storing methods this year such as large storage bags that can fit up to 500 kilogrammes of soybeans to lock away instead of waiting for space in warehouses, said Celeres analyst Anderson Galvao Gomes.

Gomes wrote in his report that soy traders were noting how farmers were able to hold back sales because of the growing use of these alternative storage methods.

Celeres is recommending its farm clients sit out of the market for the time being and watch price fluctuations on the Chicago Board of Trade following US weather news and a more concrete idea of US soy plantings.

Celeres recommended farmers return to the market at the end of May, "when we believe we will see a gradual recuperation of prices," Gomes said in the report.

Brazil is the world's no. 2 soy producer behind the US.