Producers in Brazil and Argentina have remained slow sellers of their 2009-2010 soybean crops despite the recent rally by nearby soybean futures on the Chicago Board of Trade above $10/bu.

In a weekly report, the Brazilian consulting firm Celeres estimated that Brazilian producers had sold only 48% of their crop as of April 23, up from 45% a week earlier, but down from 55% last year.

Sales are down even though harvest has progressed more quickly this year. Brazil’s harvest is now estimated to be 94% complete, ahead of last year’s pace of 89%.

An unfavorable exchange rate between the dollar and the Brazilian real continues to limit farmer selling.

The real has reached its highest level against the dollar since mid-January and is up 19.9% against the dollar compared with a year ago.

In Argentina, soybean sales have picked up as harvest has progressed, but sales volume at the largest market of Rosario has generally be reported as moderate in recent days.

Argentina’s harvest just surpassed the halfway point last week, with the government pegging progress at 54% as of April 22.

Argentine farmers have been slow to sell due to discontent with the government’s high soybean export taxes which are mostly passed onto them by exporters through lower prices and due to ideas the government may let the Argentine peso depreciate against the dollar.

Higher-than-expected production costs due to the need for fungicide applications have also likely kept some producers from selling.

Editor’s note: Richard Brock, Corn & Soybean Digest's marketing editor, is president of Brock Associates, a farm market advisory firm, and publisher of The Brock Report.