South America Calling
AgRural: Falling Brazilian Real Stimulates Soy Sales
The recent slide of the Brazilian real has stimulated sales of both the 2014-15 and 2015-16 crops over the last month, according to AgRural, a local farm consultancy.
Sales of Brazil's 2014-15 soybean reached 53% of the forecast crop as of Mar. 27, up 13 percentage points on last year but still well behind the 63% at the same stage the year before.
Meanwhile, the 2015-16 crop, which will only go in the ground from September, was already 2% sold. Last year, sales of new crop only began in May. Most of the next-crop sales were in the southern state of Parana, where farmers locked prices as high as R$68 per 60-kilogram bag ($9.64 per bushel) for February 2016 delivery, which is virtually the same as this year.
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Sales were also good in the center-west states of Mato Grosso do Sul and Goias. In Dourados, Mato Grosso do Sul, the 60-kg bag was quoted at R$60 ($8.51 per bushel) for March 2016 delivery.
The Brazilian real has devalued approximately 30% since September.
Good weather in the south of the country allowed harvest efforts to progress well over the last week.
As of Friday, harvesters had collected on 69% of the 2014-15 crop, up ten percentage points on last week and two points behind last year.
The crop is now 94% harvested in Mato Grosso and some 80% harvested in Parana.
(CZ)
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