The sales of Brazil's 2008/09 soybean crop are active, traders said on Friday, as a brief weakening of the local currency and expectations that the US planting of beans will be big prompted producers to close sales. Forward sales of the new crop are catching up to historical averages after being far behind through most of the harvest due to steadily firming Chicago prices and Asian demand over the past months, traders said.
Exports of beans out of Brazil's southern ports are at record levels despite the high export premiums for this time of the year. May and June, which mark the end of harvest, are normally peak months for exports.
Export prices for soybeans are normally offered at discounts this time of year but have been stubbornly strong this season. July delivery to the Paranagua port FOB is 46/49 cents a bushel over Chicago futures contracts. Traders reported sales of large lots this week: 45,000 tonnes for July delivery to the port of Paranagua and another lot for prompt delivery of 29,000 tonnes.
Traders said Chinese buyers were consistently turning to Brazil for beans, after drought and political tensions between the Argentine government and farmers decimated production in the world's No 3 producer, and US stocks are seen reaching 32-year lows in the coming months. Brazil exported a record 4.68 million tonnes of beans in May, topping the previous record of 4.49 million in April, according to the Trade Ministry earlier this week.