May 24, 2011

Brazil sells 65% of bumper soy crop

Brazil sold 65% of its record 2010-11 soy crop in the week ended May 20, a gain of 1% point from the previous week, as prices remained favourable for producers, said agricultural consultancy Celeres on Monday (May 23).

Celeres estimates this year's soy crop, which has been fully harvested, at 72.5 million tonnes. Sale of the crop is in line with Brazil's five-year average but higher than the 58% sold at the same time last year.

Export prices for soy at the southern Brazilian port of Paranagua remained above BRL40 (US$24.4) per 60 kg bag, a level favourable to producers, Celeres said in a weekly report.

"International prices near US$14 per bushel, combined with positive export premiums on Chicago prices, have overcome the problem of the real's valuation against the dollar," Celeres said, referring to the perceived overvaluation of Brazil's currency.

Brazil is the world's No. 2 grower and exporter of soy, after the US.