September 24, 2008

Brazil soy farmers lack credit for 2008-09 harvest

Brazilian agribusiness consultancy Celeres Tuesday (September 23) said Brazilian farmers will lack credit for the 2008-09 harvest due to the global financial crisis, the instability of global prices and volatility of the US dollar.

"Markets are globalised and multinationals that finance agriculture are having difficulties finding credit abroad to loan to Brazilian producers," local news service Estado quoted Leonardo Menezes, an analyst at Celeres, as saying.

Menezes said soy fundamentals remain good and should help to support soy prices at around US$11 per bushel on the Chicago Board of Trade, reported Estado.

Menezes added the pace of Brazilian soy sales will continue to remain uncertain until companies feel more security about the foreign markets, Estado reported.

Brazil's new 2008-09 soy crop was 17 percent sold as of Sept. 19, compared to 21 percent on average over the last five years, said Celeres Monday. The US dollar traded at 1.81 Brazilian reals Tuesday.

 
Brazil is the No. 2 soy producer behind the US.