December 23, 2008

Brazilian soy trading house Viana Trading has entered into judicial recovery proceedings, similar to chapter 11 bankruptcy in the US, reported local newspaper Gazeta Mercantil Monday (December 22).

Viana, which is a major soy trader in the Primavera do Leste area of Mato Grosso, Brazil's No.1 soy growing state, faces 150 million reals (US$63.4 million) of debt, the newspaper reported. Of this total, BRL43 million is with 1,300 local farmers, Gazeta reported.

Viana has faced difficultly repaying loans - largely based in US dollars - as the Brazilian real weakened against the US currency, making the repayments more expensive. The US dollar stands at BRL2.38 on Monday compared to recent lows of BURL.55 in August.

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