Brazilian soy farmers spurred by prices

Prices in the centre west, where deeply indebted farmers will plant up to 10%
less soy this year than last, have risen by up to 18% in the past month. Those
in coastal Parana, where 20% more land will be planted to soy this year than
last, jumped by close to 10% during October.

The sharp rise in prices
came as a surprise for many analysts, who feel that they are not justified by
fundamentals.

Until recently, the fact that beans passed through the
psychologically important $7/bushel level was not felt to be sustainable, and
was attributed to speculative action by funds, but the speculators may prove
right. Despite the fact that the US crop has been a large one, it now appears
that worldwide demand for meal and oil is growing faster than supply.