Sales of Brazil's new soy crop well below last year -consultancy
SAO PAULO, Nov 4 (Reuters) - Forward sales of Brazilian soybeans are well below last year and the historical average as farmers hold on to crops in the hope of fetching better prices, according to an agribusiness consultancy on Friday.
Safras & Mercado said in a statement that volumes of pre-sold soy advanced little from last month to just below 21% of the expected output in Brazil, the world's biggest supplier.
Many farmers are still planting their grains while others may have to replant soy seeds because of difficult weather, particularly in southern Brazil.
At the same time in 2021, forward soy sales were at 30.6% of the projected total production while the historical average for this period in the season is 34.2%, Safras noted.
Taking into account an estimated output of 151.497 million tonnes, Safras calculates committed sales amounting to 31.2 million tonnes of Brazil's new soy crop.
In recent months, Safras data has suggested new-crop sales were lagging, with growers waiting for better prices to close more deals. In relation to the 2021/2022 soy crop, an estimated 89.2% of production has been sold.
A year ago, sales of same-year crop were at 92% as Chinese demand was stronger. The five-year average for this time in the season is sales of 94% of the crop, Safras said. (Reporting by Nayara Figueiredo Writing by Ana Mano; Editing by Kirsten Donovan)
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