Brazil, the number two soy producer after the US, has again delayed voting on a bill regulating the use of genetically modified organisms, suggesting that the Lula-led government might repeat last year's temporary amnesty for farmers who plant them.
The American Soybean Association reports that although the 'bio-safety bill' was approved by the lower house in February, senators in the upper house have yet to reach a decision.
Last year Brazilian President Luiz Inácio 'Lula' da Silva granted a temporary authorisation for GM soy plantings while a bill on the planting of controversial GM soy in Brazil went through the parliamentary process.
The soy business in Brazil represents about 32 per cent of Brazilian farm trade.
But ASA reports that the Brazilian Senate, the country's upper house, has failed to move the bill. Lula is now widely expected to issue a new decree authorising soybean plantings for the coming season.
Soy prices reached 15 year highs in recent months on the back of a drawdown in global stocks last year but relief is expected this year with the US department of agriculture estimating that the global soy stocks-to-use ratio has moved up by 2 days to 90 days.
The September WASDE (World Agricultural Supply and Demand Estimates) released by the US government projects an increase in global stocks - by 1.3m mt for end of 04/05.