Nov 06, 2018

Soy Harvest in Brazil will start 10-15 Days Earlier than Last Year

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

Farmers in Brazil have planted 60% of their 2018/19 soybean crop compared to 43% last year and 41% for the 5-year average. This is up 14% for the week and continues to be a record fast planting pace for Brazilian soybeans.

As a result, farmers in Brazil are also on track for a record early start to the soybean harvest as well. In western Parana and in central Mato Grosso, the combines should go to the fields during the second half of December, which would be 10-15 days earlier than normal. The soybean harvest will also start earlier than normal due to the increased use of early maturing soybeans.

At the start of the harvest, the volume of soybeans will not be very large, but the volumes will start to increase in January and peak in February.

Even though the volume of soybeans will not be very large to start, the news of soybeans being harvested in Brazil potentially before Christmas, could have a physiological impact on the market. Brazil is expected to have one of the lowest carryover stocks in history by the time the marketing year ends at the end of January. Therefore, an extra early start to harvesting may help to meet the demand from crushers and China. The market is concerned if China will be able to avoid buying soybeans from the U.S. until new crop soybeans become available from Brazil.

The early soybean harvest will allow more time for the planting of the safrinha corn in Mato Grosso and Parana and the safrinha cotton in Mato Grosso.