Good productivity and prices in 2007

The Brazilian soybean grower had a good profitability in this year. The average productivity of the 2006/07 crop was the highest in history (2,823 kilos per hectare), due to investments in the culture and the positive weather conditions. As a consequence, the national production also reached a record in the 2006/07 crop, totaling 58.4 million tons.

Prices were at high levels - in dollars, the domestic and international quotations reached records. The higher corn, soy meal and wheat prices also reinforced the upward trend in the soybean market.

The average price in the 2006/07 crop, however, covered only the total cost of production from this crop, in the major parts of producer regions, according to the Cepea. Even with the positive situation for growers in 2007, there are still debts from the previous years, which probably will not be quit in this season - it is necessary that prices keep good to make it possible.

The CEPEA/ESALQ Index (Parana state) increased 37.2 percent in Real from January to December, averaging 34.50 reals or 17.69 dollars per bag. The Real appreciation against the dollar limited the increases. Even so, prices were lower only relative to the values registered in 2004.

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