Brazil soya sales plummet as farmers hoard crop
June 20, 2017
Soyabean sales in Brazil are lagging behind last year’s figures as farmers are hoarding the crop in hopes of fetching better prices, according to a Brazilian market consultancy.
Data from Safras & Mercados showed that soyabean farmers had so far sold 58% of the projected crop this season, well behind both the 76% at this time last year and the average figure of 74%, Reuters wrote on 5 June.
Luiz Fernando Guierrez Roque, a Safras consultant, said the key factors behind lagging sales were a stronger Brazilian currency and the price of less than US$10/bushel on the Chicago Mercantile Exchange.
A year ago, the price per bushel was US$12 – translating to about 90 reals (US$27.35)/kg – but such prices were out of the question in the current market, according to Roque.
Brazilian farmers were hoping for a “climate event” that could ruin the expected record harvest in the USA, but Roque said: “The strategy is risky as no climate event would mean US farmers would harvest a full crop.”
Safras projected a bumper soya crop of 113.3M tonnes for the 2016/17 season from Brazil, out of which the total traded by farmers was 66M tonnes on 5 June.