The rate of increasing prices was limited during the first fortnight of May in the Brazilian soybean market. Besides the harvest ending, another reason was the higher oil and soy meal supply, once their process was intensified. The CEPEA/ESALQ Index (Paraná state) kept almost stable (small raise of 0.3 percent in Real) between April 30th and May 15th, closing at 44.72 reals or 26.94 dollars per bag of 60 kilos on Thursday, May 15th. For the product delivered in the Paranaguá port, the Index decreased slight 0.6 percent in Real during the same period, at 46.64 reals or 28.10 dollars per bag.
According to the National Company for Food Supply (Conab) forecast for the 2007/08 crop, the soybean production should reach 59.5 million tons, volume 1.9 percent higher over the previous crop. Even with the increase of 2.6 percent in the cultivated area, this latest report projected a reduction of 0.7 percent in the productivity, especially due to adverse weather conditions in the state of Rio Grande do Sul. (Cepea - Brazil)