South America's soy harvest takes shape in 2013-14

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Publish time: 12th December, 2013      Source: www.cnchemicals.com
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December 12, 2013

   

   

South America''s soy harvest takes shape in 2013-14

   

   

   

For harvest early in 2014, South American countries are planning to raise a record crop of soy.

   

   

"The latest number right now for Brazil is 90.7 million tonnes from Agroconsult. That group is sharply higher than the USDA''s estimate," said Rich Nelson, Allendale chief strategist, in McHenry, Ill.

   

   

In the November World Agricultural Supply & Demand Estimate (WASDE) report, the USDA forecast Brazil''s 2013-14 soy production at 88 million tonnes. Argentina''s production was forecast at 53.3 million tonnes, and Paraguay''s was forecast at nine million tonnes.

   

   

The WASDE numbers were updated on December 10. Most of the soy trade expected the USDA to increase their soy planting intentions numbers for South America.

   

   

As of early December, the Buenos Aires Grain Exchange reported that South America had about 60% of their soys planted.

   

   

The USDA reported in early December that US soy sales had already reached 95% of the agencies export forecast.

   

   

Shipments remained ahead of average but not on the same pace as sales.

   

   

Export soy contracts can vary greatly, and there are various ramifications of cancelling a contract. Most contracts include some type of penalty for cancellation, but in some cases, cancellation fees are minimal.

   

   

With China continuing as the number one purchaser of soy, the US does have to pay attention to the role of politics.

   

   

Prior to the release of the December 10 WASDE report, the marketing firm forecast a US 2013 soy carryout of four million tonnes.