August 26, 2008

Brazil farmers bullish on soy, waiting for US$15 action

Brazilian farmers received more bullish news on soy futures Monday (August 25) when Morgan Stanley says it still targets 2008-09 soy prices at US$15 per bushel.

Brazil soy business has been slower than last year because producers are not willing to sell until they have a lock on what the US soy crop is going to look like. Morgan Stanley says the US crop was growing under imperfect conditions and would like continue that way for the remainder of the year

"Brazil soy producers will wait for that $15 and not waste any time closing business with buyers," says Steve Cachia, a senior commodities analyst for grain brokerage Cerealpar in Brazil's Parana state.