The Conab's report about the Brazilian soybean crop (2006/07), published at the beginning of March, brings only few news. The main changes were the reduction of Mato Grosso state production, due to the rainfalls during the harvest period, and the increase in the South production. Brazil should produce a record volume of the soybean, of 56.7 million tons, increase 6.2 percent over the previous crop.
Regarding the productivity, in the national average, it should reach 2,755 kilos per hectare, 14.6 percent higher than the previous crop, due to the good weather conditions. In the Parana state, helped also by the climate, the productivity estimated by Conab is of 3,050 kilos per hectare, almost the same from the record figure of the 2002/2003 crop.
The CEPEA/ESALQ Index (Parana state) decreased 4.1 percent in Real and 2.75 percent in dollar from Feb 28th until Mar 15th, closing at 31.80 reals or 15.21 dollars per bag of 60 kilos this Thursday. Harvest activities have been developing in good conditions.
Among all fundaments that influenced the global market during the first week of March was China's stock market setback. This fact was followed with apprehension especially by the soybean market.
China should consume 47.85 million tons of soybean and import 31.5 million tons (in grain). From two crops ago, the Chinese imports totaled 25.8 million tons, increasing 22 percent in the 2006/07 crop.
Brazil, in turn, enlarged its exports in 27.8 percent in most part of China. That country should import 45.5 percent of all the soybean in grain traded in the global market during the 2006/07 crop. Brazil should represent 37 percent of global exports. Any change in the growth of China's economy makes impact in the global soybean market.