May 03, 2017

2016/17 Soybean and Full-season Corn Yields set Records in Parana

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

Farmers in the state of Parana in southern Brazil have essentially finished the harvest of their soybean and full-season corn crops and they are very pleased with the results. The Department of Rural Economics (Deral) is reporting that the 2016/17 soybean harvest in Parana is 99% complete with an average statewide soybean yield of 3,700 kg/ha (53.6 bu/ac). This sets a new record high soybean yield for the state and is 18% higher than last year. The total soybean production for the state is estimated at 19.4 million tons or 2.9 million tons more than last year.

Generally, when there are record large crops, there are low prices as well and that is the case this year in Parana. Soybean prices in the state have been falling due to the huge crop as well as a stronger Brazilian currency compared to last year. The average selling price for soybeans in the state during the month of April was R$ 56.00 per sack (approximately $8.20 per bushel) compared to R$ 66.00 per sack in April of 2016 (approximately $9.65 per bushel).

Farmers in the state are also very pleased with their full-season corn crop which is 96% harvested. The average statewide yield is 9,200 kg/ha (141.6 bu/ac), which is up 15% compared to last year. The fill-season corn acreage increased 21% this year to 503,000 hectares and the total full-season corn production is estimated at 4.6 million tons or 40% more than last year.

The safrinha corn acreage is expected to increase 8% to 2,275,000 hectares and if there is good weather during the growing season, the safrinha corn production is estimated at 13.8 million tons or 34% more than last year.

As you would suspect, with a big corn crop on the way, corn prices have declined as well. The average price of corn in the state during April was R$ 21.00 per sack (approximately $3.08 per bushel) which is 43% less than in April of 2016 when the average price was R$ 36.50 per sack (approximately $5.35 per bushel).